Civic Insights with David Billings
As the Texas 89th Legislative Interim Session begins, familiar themes are already taking shape in Austin—property taxes, growth, and the role of local government in a rapidly changing Texas.
Lieutenant Governor Dan Patrick has issued his first round of interim charges, including a directive to the Senate Finance Committee to explore further property tax relief. That alone guarantees a robust debate in the months ahead. Meanwhile, House leadership under Speaker Dustin Burrows has yet to release its interim charges, leaving many watching to see whether the House charts a different course.
But there is another issue quietly emerging—one that could have real implications for fast-growing counties like Rockwall: data centers and the limits of county authority.
The Data Center Debate Is Here
Data centers may not sound controversial at first. They power artificial intelligence, cloud storage, and the digital services we use every day. They also require enormous amounts of electricity, water, and land.
Across Texas, local officials are beginning to wrestle with a simple question: How do we welcome economic development while managing infrastructure strain?
In Hood County, commissioners discussed temporarily pausing certain large industrial projects, including data centers, while studying potential impacts on water, power demand, and transportation. That discussion quickly turned into a bigger legal question: Do counties even have the power to impose a development moratorium?
Meanwhile, the City of San Marcos—which has zoning authority—blocked a proposed data center after public opposition. Other counties, including Guadalupe and Ellis, have taken more measured approaches, such as reviewing tax incentives or conducting additional study.
The common theme is clear: local governments are trying to respond to rapid growth while staying within the boundaries of state law.
Cities and Counties Are Not the Same
This debate highlights something many Texans do not fully realize.
Cities have broad zoning and land-use tools. Counties do not.
Counties in Texas can only exercise powers clearly granted by the Constitution or by statute. They cannot create new regulatory tools simply because growth accelerates or residents demand action.
That distinction matters.
If a project complies with state law, a county’s ability to stop or delay it may be limited. Lawmakers have repeatedly signaled that counties cannot assume powers the Legislature has not explicitly granted.
That legal structure is now front and center in Austin.
The Bettencourt Request
After Hood County’s discussion, State Senator Paul Bettencourt formally requested an opinion from the Attorney General to clarify whether counties have constitutional authority to impose development moratoriums.
The question may sound technical, but it reflects a core principle of Texas governance: commissioners courts must point to clear legal authority for their actions.
This is not just a procedural issue. It goes to the heart of Texas’ long-standing commitment to property rights, limited government, and predictable statewide standards.
The Senate Committee on Local Government is expected to follow the issue closely during the interim.
The Courts and Rockwall County
Here in Rockwall County, similar questions are already playing out in court. The D.R. Horton lawsuit and the Huffines (MUD No. 10) litigation both raise a central issue:
What tools does a county truly have when development occurs outside city limits?
One case examines whether counties can use existing subdivision standards to address regulatory gaps. The other asks whether a county can block or significantly alter a Municipal Utility District once statutory procedures are satisfied.
The courts are unlikely to weigh in on whether growth is good or bad. Instead, they will focus on whether the Legislature clearly granted the power being asserted.
Historically, Texas courts tend to answer that question conservatively: if the authority is not clearly written in statute, it probably does not exist.
A Quiet Legal Shift
While much of the public discussion centers on property taxes and housing supply, a deeper shift is taking place.
- The D.R. Horton litigation reflects the realities of the post-ETJ era.
- Senator Bettencourt’s request regarding data center moratoriums points to the same underlying theory—state preemption over expanding local discretion.
- Counties across Texas may soon see clearer legal limits on what they can and cannot regulate.
This is not accidental. It reflects an ongoing recalibration between Austin and local governments.
Why This Matters for Rockwall County
For Rockwall County, this conversation is not theoretical.
Residents expect county officials to manage growth, protect infrastructure, and preserve quality of life. Yet state law sets firm boundaries on what counties can do.
That creates a tension many fast-growing counties now face:
- Residents expect local control.
- State law limits county tools.
- Growth continues regardless.
If a large data center were proposed in unincorporated Rockwall County, the county’s role would likely focus on subdivision standards, infrastructure coordination, and incentive policy, not broad development bans or informal moratoriums.
Cities within the county would hold greater authority through zoning.
Understanding that distinction is critical as public conversations grow louder.
What Comes Next
As the interim session progresses, lawmakers could:
- Reinforce existing limits on county powers.
- Clarify recent legislation addressing informal residential moratoriums.
- Expand county tools for infrastructure-intensive projects; or
- Further strengthen statewide standards to prevent unauthorized local restrictions.
Given Texas’ long-standing emphasis on property rights and economic freedom, many expect lawmakers to favor clearer limits rather than broader local discretion.
At the same time, rapid growth may require a thoughtful balance—one that acknowledges infrastructure realities without undermining Texas’ predictable development framework.
Final Thought
Texas is growing faster than its governance structure was originally designed to handle. Data centers are simply the latest example of how technology and population growth are testing the lines between state authority and local control.
For Rockwall County, the key question is not whether growth will continue. The question is whether we fully understand the legal framework shaping it.
We either plan for the future, or the future plans for us.
🎙️ Continue the Conversation
Listen to my podcast, “As Fate Would Have It.” My co-host Dave Martin, host of The Good Government Show, joins me as we talk with government and local leaders about what’s happening in Fate and across Rockwall County.
New episodes drop monthly. Give it a listen and let me know what topics you’d like us to cover.
About the Author
David Billings, former Mayor of Fate, has served the community for over a decade. A longtime business leader in the telecommunication industry, Navy veteran, and resident of Rockwall County, he brings both professional and civic experience to his writing on government, budgeting, and local economics. He is a graduate of Leadership Rockwall, North Texas Commission Leadership Program, active in several Rockwall County non-profits boards, and the American Legion.
He is passionate about civic involvement in local government, maintaining transparent governance and thoughtful strategic planning to preserve a bright future for the regions.
