HILLSBORO — The Hill County Commissioners Court approved a one-year moratorium on new data center construction in mid-May, with County Judge Shane Brassell casting the deciding vote after the initial tally ended in a tie. Commissioner Jim Holcomb made the motion to impose the moratorium, stating it would address issues and assess the far-reaching impact to the local community.

RCM Hill, LLC filed a lawsuit against Hill County, Brassell, Holcomb, and Commissioner Larry Crumpton, arguing the moratorium is illegal and unconstitutional. The lawsuit states the measure “categorically bars the commencement of construction pertaining to data center-related projects in Hill County” and seeks to have it declared null and void.

According to the suit, RCM Hill spent more than 16 months and nearly $1 million securing rights to purchase over 800 acres near Hillsboro for a major data center project. The company claims the moratorium violates its property, contract, development, and due process rights under both the U.S. and Texas constitutions and could jeopardize key ERCOT approval deadlines.

County Attorney David Holmes warned commissioners during the May meeting that the moratorium lacked legal basis. “The moratorium, the way you have it drafted there, is it legal? No, you don’t have a legal basis. If you vote to enact this, I believe we will very quickly be in litigation,” Holmes said. He added, “Neither the state constitution nor any state statute authorizes the county commissioners to enact a moratorium.”

Commissioner Scotty Hawkins also expressed concerns during the meeting, saying, “I’m not against it, I just want to make sure we’re doing it the right way. I don’t think we’re doing it the right way until we get a fire marshal in place.” Holmes later confirmed the county is “not in a position to comment at this time.” The lawsuit remains pending.