Harlingen Approved Data Center Water Supply Contract

The city secured a 50-year agreement to supply 4.7 million gallons of treated sewer water daily to a massive campus.

Updated on Oct. 9, 2026 in Data Centers

Harlingen Approved Data Center Water Supply Contract

Live Poll

Should local government contract negotiations be kept out of the public arena?

On September 22, 2025, the Harlingen WaterWorks board unanimously approved a 50-year contract to provide treated effluent water to a 1,780-acre data center project proposed by Eneus Energy. The agreement allows for the diversion of up to 4.7 million gallons of water daily, which was previously discharged into the Arroyo Colorado.

Why it matters

This deal underscores the growing tension between data center cooling demands and municipal water infrastructure in arid regions. By securing non-potable water, the project attempts to balance high-capacity cooling requirements without straining the local city supply.

The contract sets a price of 75 cents per 1,000 gallons of effluent water, which is one-third the cost of local potable water. The campus is planned for a 1,780-acre site near Valley International Airport.

The players

Harlingen WaterWorks

The local utility provider responsible for managing water distribution and wastewater discharge for the city of Harlingen.

Eneus Energy

The developer behind the 1,780-acre data center project proposed for land near Valley International Airport.

Rio Grande Valley Property Group

The entity identified in the approved water contract to manage the infrastructure supply for the site.

The details

The agreement leverages reclaimed effluent water—wastewater that has been treated for non-potable use—to meet the cooling demands of the proposed facility. By opting for this recycled source, the project avoids drawing from the city's potable water reserves, which are significantly more expensive. Discussions regarding these terms were finalized after the board utilized executive session protocols, citing the Texas Open Meetings Act to categorize the specific contract negotiations as legal matters.

September 16, 2025: The developer requested that negotiations remain confidential.
September 18, 2025: Officials outlined the procedures for holding the discussions in a closed session.
September 22, 2025: The board of directors unanimously approved the water supply contract.
December 18, 2025: The developer inquired about blending potable water with reclaimed supplies.

The Tech Race

The contract follows a growing trend of major infrastructure projects utilizing the Texas Open Meetings Act to shield competitive negotiation details from public view. This strategy reflects the industry effort to minimize public relations hurdles while securing long-term utility rights.

Residents should expect the project to alter water usage patterns near the Arroyo Colorado as daily discharge levels change. The 50-year term locks in current infrastructure priorities, though specific construction phases remain unannounced.

The takeaway

This agreement highlights how municipalities are prioritizing industrial water contracts to facilitate large-scale development. Observers should track future board filings to identify when the facility begins site preparation near the airport.