Hood County leaders will once again weigh whether to hit pause on large-scale data center development.
But even if they move forward, state law may stand in the way.
After narrowly voting 3-2 earlier this month against a proposed moratorium on new industrial projects, county commissioners are now reconsidering the idea Tuesday amid mounting public pressure and new procedural moves that could test the limits of local authority.
At the center of the debate is House Bill 2559, passed during the latest legislative session, which clarifies how cities can impose development moratoriums.
"There clearly is a legal difference of opinion between some of these localities and state government over what the boundaries of county regulatory authority are," said Southern Methodist University political science professor Matthew Wilson.
He said that counties are "entirely subservient to state government," meaning if lawmakers in Austin choose to restrict local authority, they generally can.
Unlike the previous vote, commissioners are now considering directing the county attorney to formally request an opinion from the Texas Attorney General on whether Hood County can act beyond the expressed provisions of the state's Local Government Code.
They are also weighing a resolution asking Gov. Greg Abbott to call a special legislative session to address the rapid growth of data centers in Texas.
Local governments in Texas derive their authority from the state, meaning the Legislature can override or narrow local decision-making powers. Cities typically exercise zoning authority, but counties operate with more limited regulatory tools.
Hood County leaders have previously cited a section of Texas Government Code — Subchapter K of the code laying out county zoning authority — arguing it allows counties to act in cases involving ecological or environmental protection.
Commissioners and residents have raised concerns about water use, road impacts and broader strain on rural infrastructure.
But that authority may have been intended primarily for municipalities, not counties. Houston-area state Sen. Paul Bettencourt made his presence felt at this week’s meeting after tweeting out a letter asking the Texas Attorney General’s Office to investigate county-level mandates.
Bettencourt said counties do not have broad moratorium authority — and never have. House Bill 2559 was designed to address similar actions by home-rule cities, which previously had clearer authority to impose development moratoriums.
"The reason why ‘counties’ was not included in the bill is because they don't have the right," said Bettencourt. "Everybody can have an opinion, but that's why we have constitutions and statutes so that we can work through this given the framework of how government actually operates."
State pressure
Bettencourt's public comments intensified the debate. Referencing HB 2559, he warned about potential conflicts with state law.
"It's my job as the Local Government Committee chair to keep people out of trouble before they get into it," Bettencourt said, defending his public comments.
He said his office had heard of similar moratorium discussions emerging in multiple counties across Texas and began drafting a letter with a House colleague weeks earlier.
Bettencourt added that his office had no communication with Hood County commissioners ahead of their vote.
For weeks, county attorney Matthew Mills has pleaded against moving forward with a moratorium fearing the state would take the county to court.
"If you want the truth, I can be pretty blunt," Mills said during the court's previous meeting. "I don't believe you have the authority to do a moratorium period. I do not recommend this, I don't know what else to say."
Water, air and long-term risk
Opponents of the proposed data centers say the debate isn't just about economic development, but long-term strain on natural resources.
Rita Beving, a consultant for consumer advocacy nonprofit Public Citizen, said one of the projects under consideration could draw heavily from local groundwater supplies.
"We are very much afraid that there is not enough water in the aquifer to support these projects," Beving said. "One of the projects that has been put forward would actually use as much as a million gallons of water per day."
Even if water is recycled onsite, the volume required and the potential discharge into the Paluxy River raise concerns about long-term sustainability, she said.
Beving also raised concerns about air quality.
"Whenever you have natural gas plants, you have emissions," she said, adding that residents living near the facilities would bear the health impacts.
But Beving said the risks extend beyond environmental concerns. She argues counties could also face economic consequences if large-scale energy or technology projects fail to deliver on their promises.
"There's always the promise of lots of jobs with these projects," said Beving. "But the promise of jobs comes into the construction phase, where you can have as many as 1,000 construction workers. But yet, the actual data center may provide 100 or less in the number of jobs it permanently creates."
Once infrastructure and water commitments are made, she added, counties may have limited leverage to reconsider.
If Hood County moves forward with a moratorium, it could trigger a legal showdown over how far county authority extends under state law.
Residents' ultimate leverage may be political rather than legal: If utility costs rise or environmental degradation becomes visible, pressure on lawmakers could grow, Wilson said.
For Hood County, HB 2559 adds another layer of uncertainty, one that could determine whether local leaders have the authority to hit pause on large-scale industrial growth, or whether that power rests squarely in Austin.
"If people start to see that their power and water rates are being significantly driven up because of the usage of these data centers," Wilson said, "then this is absolutely going to become a major political issue."
Emmanuel Rivas Valenzuela is KERA's breaking news reporter. Got a tip? Email Emmanuel at erivas@kera.org.
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