Two data center companies have appealed a recent Hood County judge’s ruling dismissing their claim that the plans received automatic approval because the county failed to approve or reject submitted data center concept plans within 30 days.
National CRE Holdings LLC—the parent company of Starwood Capital Group—is attempting to fund the construction of two data centers, known as Project Red and Project Yellow. This being done in conjunction with MARA Holdings, which is owned by Greenland Capital LLC. MARA currently owns and operates two bitcoin mining centers in the county, and residents complain about the noise pollution generated by the operation.
In the lawsuit, National CRE Holdings and Greenland Capital argued the county missed its 30-day deadline to approve or deny the plans—meaning the projects were approved under the state’s Local Government Code.
The county argued the planned data centers did not trigger the 30-day deadline because it did not meet the definition of “development plans,” which must include “a preliminary plat, preliminary subdivision plan, subdivision construction plan, site plan, general plan, land development application, or site development plan.”
Judge Bryan Bufkin of the 355th Judicial District Court dismissed the lawsuit and ruled that it could not be brought again in its current form.
The ruling reinforces the county’s ability to review large industrial developments before construction to assess impacts on water resources, infrastructure, and local residents.
Laura Crawford, co-founder of Protect The Paluxy Valley Inc., said that protecting rural character and limited groundwater resources remains a central concern for Hood County residents.
“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. When you’re talking about farmers and ranchers, water is a lifeline. We already don’t have a lot of water. We’ve seen wells having to go deeper and deeper to get water.”
Despite the challenges, Crawford said the legal victory is adding momentum to the campaign.
“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,” Crawford told KERANews.
Both developers filed a notice of appeal on July 15, explaining they will challenge Bufkin’s decision before the Second Court of Appeals.
