Pulaski County, Arkansas – Pulaski County Judge Barry Hyde has vetoed an ordinance approved by the county’s quorum court that would establish new regulations for data centers, saying the measure could expose the county to significant legal and financial risks.
The quorum court approved the ordinance Tuesday by an 11-4 vote following months of debate over how data centers should be regulated in Pulaski County. The discussion has included questions about property rights, local authority and what could happen if new rules are applied to projects after agreements have already been made. One data center is already under construction in the Wrightsville area.
Hyde announced his decision in a letter to County Clerk Terri Hollingsworth. He said he agreed with the general need for regulations but believed several important legal and administrative questions needed to be resolved before the county moves forward with such a system.
According to Hyde, one of the biggest concerns involves state law and the extent of the county’s authority to impose certain requirements. He said the issue becomes especially important when large private investments are involved and projects may already have established rights.
“With projects involving extraordinary levels of private investment, that is not a minor drafting concern,” Hyde wrote. “It is an invitation to costly litigation over vested rights, due process, contractual interests, and constitutional property protections.”
The debate over data center regulations has been unfolding in Pulaski County for months. Earlier efforts included proposals for a temporary moratorium and other restrictions, while county officials continued working on a broader regulatory framework. The county’s quorum court has considered requirements involving high-intensity digital infrastructure, including permitting, performance standards, monitoring and other safeguards.
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Hyde also questioned the appeals process included in the ordinance. He said the proposed procedure operates outside the normal process established under Arkansas law, raising another concern about whether the county would be able to legally administer the new system.
The judge also pointed to the financial and administrative responsibilities the ordinance would create. Under the proposal, the quorum court would be involved in setting funding and a fee schedule for the regulatory program. Hyde argued that the county should first determine whether it has enough staff and financial resources to carry out those responsibilities.
“The County should not create obligations today and determine tomorrow whether it has the people and money to fulfill them,” Hyde wrote.
The concerns extend beyond the immediate cost of establishing a regulatory system, Hyde said. He warned that the consequences of potential litigation and changes to county revenue could affect the county well into the future.
The judge said the financial effects could eventually reach schools, libraries and other public institutions if important revenue sources are lost. He also pointed to a recent case in Texas as an example of the potential legal exposure officials may face when local governments adopt regulations involving major private projects.
The veto does not necessarily end the county’s effort to regulate data centers.
The quorum court has the authority to attempt to override Hyde’s decision. Because the court has 15 members, an override would require three-fifths of the membership, or nine votes. If nine or more members vote to override the veto, the ordinance would take effect.
However, the override cannot happen immediately. It must be considered during a regular meeting of the quorum court, meaning the issue is expected to return when the court holds its October meeting.
The dispute comes as Pulaski County continues to face pressure over how it should handle the growing interest in data centers. The county has been considering regulations while projects have moved forward in central Arkansas. The issue has generated both support and opposition, with debates involving investment, infrastructure, land use, utilities and the county’s ability to regulate large developments.
For now, Hyde’s veto leaves the ordinance on hold and gives the quorum court another decision to make. Members can accept the veto or attempt to gather the nine votes required to override it at the October regular meeting.
The article keeps the supplied quotes unchanged and separates Hyde’s stated concerns from the broader debate surrounding data center development.
