Granbury Data Center Field Trip, Broken Link Spark Officials Lawsuit

A lawsuit filed against seven Granbury city officials has put a spotlight on how the Texas city handled the annexation of Knox Ranch for a large-scale data center development, with plaintiffs alleging that a broken agenda link and an undisclosed officials' field trip kept the public in the dark during critical decision-making.

The lawsuit names Mayor Jim Jarratt, Mayor Pro Tem Bruce Wadley, City Manager Chris Coffman, and City Council Members Angela Parker, Skip Overdier, Zeb Ullom, and Greg Corrigan as defendants.

Residents stated in the suit that they first learned of the Knox Ranch annexation in December 2025 through social media, without formal public notice. They also alleged that the City Council agenda for January 6, 2026 was defective, leaving them unaware that the annexation for construction of the data center would be discussed at that meeting.

The broken agenda link, central to the lawsuit's procedural claims, sits alongside allegations that officials conducted a field trip to an existing data center facility without public disclosure, further undermining residents' ability to weigh in before votes were cast. Plaintiffs argue both failures violated the Texas Open Meetings Act.

The lawsuit also states that taxpayers and ratepayers in Granbury and Hood County are being forced to pay taxes tied to the annexation of Knox Ranch for the project.

The city of Granbury planned public hearings on the rezoning of the 2,100-acre former Knox Ranch for the data center power plant, a project that has drawn sharp opposition from residents worried about noise, water consumption, lighting, and broader environmental impacts.

After hours of testimony from dozens of residents, Hood County commissioners voted down a proposed temporary pause on new industrial development, including data centers, after a state senator threatened legal action against such a moratorium.

The Granbury case has drawn attention well beyond Hood County as a cautionary example of how quickly data center projects can advance without adequate community engagement. The clash is playing out across Texas as crypto facilities and data centers move to rural parts of the state, recruited by state leaders and drawn by abundant land, fewer regulations, and attractive tax deals. Unlike some states, Texas does not tax crypto companies' profits.

Whether Granbury's lawsuit succeeds in unwinding the Knox Ranch annexation or forces greater transparency in future votes, it has already altered how residents across Texas view the relationship between rapid tech infrastructure growth and the procedural safeguards meant to protect them.