A Hood County district judge dismissed a lawsuit brought by developers seeking approval of two proposed data center projects, handing county officials a legal victory in an ongoing dispute over local oversight of large-scale industrial developments.
District Judge Bryan Bufkin granted Hood County's Plea to the Jurisdiction Tuesday, dismissing claims brought by National CRE Holdings LLC and Greenland Capital LLC with prejudice and preventing the lawsuit from being brought again in the same form.
In the lawsuit, developers argued two proposed data center campuses known as Project Red and Project Yellow should receive automatic approval because county officials did not act within a statutory 30-day deadline to approve development plans under the state's local government code.
The court rejected that argument after defendants argued the projects did not fall under the definition of "development plans," defined in statute as "a preliminary plat, preliminary subdivision plan, subdivision construction plan, site plan, general plan, land development application, or site development plan."
In other words, they argued, the court could not rule in the companies' favor based on another definition of that term.
The companies have indicated they will appeal the ruling in court filings.
Laura Crawford — co-founder of Protect the Paluxy Valley, a local advocacy group that has opposed the proposed developments — said the decision is a significant victory because it prevents developers from using a state law's 30-day approval deadline to bypass county oversight.
"I think it's a big win for us," Crawford said. "The projects are saying that they fall under the rule of law and the 30-day shot clock and they would be automatically approved if that were the case. The court sided with Hood County.”
The order reinforces the county's authority to review large industrial developments and consider potential impacts on water resources, infrastructure and the rural character of the community before granting approvals.
Crawford said the legal victory adds momentum to the group's broader campaign against the proposed data centers.
"It's been very encouraging to win a couple of battles in the war," Crawford said. "The developers still say they're moving ahead, and we'll keep battling to prevent them from getting water and power. Full speed ahead for us too."
The proposed developments have drawn public attention in Hood County, where residents have expressed concerns about the potential effects of large-scale data centers on local infrastructure and natural resources.
Crawford said preserving the area's rural character and protecting limited groundwater supplies remain among residents' biggest concerns.
"When you're talking about farmers and ranchers, water is a lifeline," Crawford said. "We already don't have a lot of water. We've seen wells having to go deeper and deeper to get water."
It was not immediately clear whether National CRE Holdings LLC or Greenland Capital LLC plan to appeal the ruling. KERA has reached out to the developers for comment and will update this story with any response.
The court's decision is the latest development in a broader debate over data centers in Hood County.
Last week, Granbury residents also launched recall efforts against five city leaders over the city's handling of the proposed Project Patriot data center. And earlier this month, residents also filed no-confidence petitions against the city attorney and manager.
Crawford said she was encouraged by residents demanding greater transparency.
"We definitely are encouraged to see the groups there wanting and asking for transparency and taking action on that," Crawford said. "That is encouraging because the lack of transparency is very concerning on all of these projects."
Emmanuel Rivas Valenzuela is KERA's breaking news reporters. Got a tip? Email Emmanuel at erivas@kera.org.
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