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Morgan County Imposes 12-Month Moratorium on New Bitcoin Mining Facility Near Somerville
Morgan County’s board of commissioners just put a 12‑month hold on a proposed Bitcoin mining hub that could turn the quiet lanes of Somerville into a humming power plant. On Tuesday, the commission voted 4‑0 to adopt a resolution suspending any new data‑center projects in unincorporated Morgan County while the county studies environmental and community impacts.
The pause follows a town‑hall where neighbors raised worries about noise, power draw, water use, and the possible impact on local wildlife. Commissioner Ray Long said the break would give the county time to "study what the environmental impacts will be" and to "evaluate how it will disrupt the neighborhood."
The stalled project belongs to Sovereign Gazelle, a company incorporated this spring. The firm plans a 15‑acre mining complex at 369 Union Road in Commission District 4, just outside Somerville. Union Road, a mile‑and‑a‑half long, hosts roughly 40‑50 houses. Sovereign Global Solutions Inc., the Texas‑based parent, bought the land for $300,000 in August 2025, according to county revenue data.
Sovereign Gazelle intends to occupy 10 of the 15 acres. To meet the facility’s estimated 50‑megawatt demand—enough to power roughly 42,000 homes—the company is seeking rights of way from four residents to install 75‑foot‑tall utility poles. The poles would carry power lines across the property. If the easements on Union Road cannot be secured, the developers would consider routing the lines along nearby Antioch Road, though the same easement requirements would apply.
Residents have voiced a range of concerns. A 14‑year‑old Somerville resident, Eli Bentley, asked for an environmental impact assessment to determine whether the project would harm federally protected species. He noted that the area hosts three species of bats, as well as turtles, salamanders, and mollusks. Long said that if endangered animals were affected, the issue would rise to a federal level.
Joe Wheeler Electric Cooperative (JWEMC) would supply the power. General manager and CEO Gene Kanikovsky, who attended the meeting, said the cooperative is "agnostic" about the project. He explained that JWEMC cannot refuse a member who meets its bylaws, and that the cooperative does not pay for or obtain easements—those responsibilities lie with the developer.
In the days before the vote, Sovereign Gazelle and a JWEMC representative met with about 20 nearby residents. The four property owners who own the land needed for the utility poles have so far declined to sell. Kanikovsky clarified that the cooperative would need easements on either Union Road or Antioch Road, each requiring a 15‑foot right of way on either side of the pole, roughly 30 feet in total.
Senator Arthur Orr, a Republican from Decatur, is not present at the commission meeting but said on Monday that he is working on legislation to prevent data‑center projects from being built near residential areas in Morgan County. He has been in contact with state bill drafters and attorneys to explore options for a local ordinance that would require data centers to be located in industrial parks or give the county commission regulatory authority over such projects. Orr also noted that Oklahoma has passed a law that prohibits the cost of increased energy use by data centers from being passed on to existing ratepayers, and suggested a similar statewide approach could be considered in Texas.
The moratorium does not stop the project permanently. Long emphasized that the county is "not claiming today that we are going to stop this forever. All we’re doing is pausing so we can step back and study." After the 12‑month period, the county will conduct an environmental assessment and weigh community concerns before deciding whether to allow the project to proceed.
The decision reflects a growing trend of local opposition to data‑center developments that can strain infrastructure and affect wildlife. It also highlights the limited regulatory powers that counties have compared to municipalities, a factor that has led several Texas counties to seek additional authority over large‑scale energy projects. As of now, the Sovereign Gazelle project remains on hold, and the county will release its findings after the moratorium period. Future development will likely be subject to the county’s evaluation and any new legislation Senator Orr is pursuing.
Industry observers are watching closely, as similar disputes have delayed or halted data‑center projects across the United States in recent years, especially in regions where local residents and environmental groups raise concerns about energy consumption and ecological impacts.
The pause follows a town‑hall where neighbors raised worries about noise, power draw, water use, and the possible impact on local wildlife. Commissioner Ray Long said the break would give the county time to "study what the environmental impacts will be" and to "evaluate how it will disrupt the neighborhood."
The stalled project belongs to Sovereign Gazelle, a company incorporated this spring. The firm plans a 15‑acre mining complex at 369 Union Road in Commission District 4, just outside Somerville. Union Road, a mile‑and‑a‑half long, hosts roughly 40‑50 houses. Sovereign Global Solutions Inc., the Texas‑based parent, bought the land for $300,000 in August 2025, according to county revenue data.
Sovereign Gazelle intends to occupy 10 of the 15 acres. To meet the facility’s estimated 50‑megawatt demand—enough to power roughly 42,000 homes—the company is seeking rights of way from four residents to install 75‑foot‑tall utility poles. The poles would carry power lines across the property. If the easements on Union Road cannot be secured, the developers would consider routing the lines along nearby Antioch Road, though the same easement requirements would apply.
Residents have voiced a range of concerns. A 14‑year‑old Somerville resident, Eli Bentley, asked for an environmental impact assessment to determine whether the project would harm federally protected species. He noted that the area hosts three species of bats, as well as turtles, salamanders, and mollusks. Long said that if endangered animals were affected, the issue would rise to a federal level.
Joe Wheeler Electric Cooperative (JWEMC) would supply the power. General manager and CEO Gene Kanikovsky, who attended the meeting, said the cooperative is "agnostic" about the project. He explained that JWEMC cannot refuse a member who meets its bylaws, and that the cooperative does not pay for or obtain easements—those responsibilities lie with the developer.
In the days before the vote, Sovereign Gazelle and a JWEMC representative met with about 20 nearby residents. The four property owners who own the land needed for the utility poles have so far declined to sell. Kanikovsky clarified that the cooperative would need easements on either Union Road or Antioch Road, each requiring a 15‑foot right of way on either side of the pole, roughly 30 feet in total.
Senator Arthur Orr, a Republican from Decatur, is not present at the commission meeting but said on Monday that he is working on legislation to prevent data‑center projects from being built near residential areas in Morgan County. He has been in contact with state bill drafters and attorneys to explore options for a local ordinance that would require data centers to be located in industrial parks or give the county commission regulatory authority over such projects. Orr also noted that Oklahoma has passed a law that prohibits the cost of increased energy use by data centers from being passed on to existing ratepayers, and suggested a similar statewide approach could be considered in Texas.
The moratorium does not stop the project permanently. Long emphasized that the county is "not claiming today that we are going to stop this forever. All we’re doing is pausing so we can step back and study." After the 12‑month period, the county will conduct an environmental assessment and weigh community concerns before deciding whether to allow the project to proceed.
The decision reflects a growing trend of local opposition to data‑center developments that can strain infrastructure and affect wildlife. It also highlights the limited regulatory powers that counties have compared to municipalities, a factor that has led several Texas counties to seek additional authority over large‑scale energy projects. As of now, the Sovereign Gazelle project remains on hold, and the county will release its findings after the moratorium period. Future development will likely be subject to the county’s evaluation and any new legislation Senator Orr is pursuing.
Industry observers are watching closely, as similar disputes have delayed or halted data‑center projects across the United States in recent years, especially in regions where local residents and environmental groups raise concerns about energy consumption and ecological impacts.
