sulphur springs v. vistra -- land restriction antitrust dispute
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case overview
| Case | Sulphur Springs v. Luminant/Vistra |
| Court | Texas state court (Hopkins County) |
| Filed | 2025 |
| Parties | City of Sulphur Springs + MSB Global v. Luminant/Vistra |
| TX AG Involvement | Amicus brief + antitrust investigation |
| Status | Active |
background
vistra subsidiary luminant donated former lignite mine land to sulphur springs with a restrictive covenant prohibiting power generation or storage. sulphur springs then agreed with msb global to build 30 ai data centers on the land. vistra sent a cease-and-desist in september 2025.
sulphur springs and the texas attorney general argue the restrictive covenant creates an illegal “energy monopoly” violating state antitrust law. ag ken paxton’s office filed an amicus brief supporting the city and announced an investigation into luminant for including similar restrictions in 100+ other deeds across texas.
vistra filed counterclaims arguing the deed restriction is enforceable. a judge denied sulphur springs’ motion for early resolution in february 2026.
significance
this case has implications for data center siting across texas, particularly on former industrial/mining land. if the restrictive covenants are found to violate antitrust law, it could open up significant acreage for data center development.
sources
- heatmap news: sulphur springs data center battle
- kltv: legal battle over ai data center
- ketk: sulphur springs suing
last updated: february 22, 2026