Harlingen Approved Water Contract for Data Center

The city board finalized a long-term agreement to supply treated sewer water to a 1,780-acre development site.

Updated on Oct. 9, 2026 in Data Centers

Harlingen Approved Water Contract for Data Center

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

On September 22, 2025, the Harlingen WaterWorks board of directors unanimously approved a water contract with Rio Grande Valley Property Group. The agreement secures a supply of treated sewer water for a proposed data center campus situated near Valley International Airport.

Why it matters

The deal ensures the long-term water supply for a massive industrial project while utilizing effluent water that would otherwise be discharged into the Arroyo Colorado. Developers requested closed-door negotiations to avoid the costs of public relations engagement.

The agreement guarantees Rio Grande Valley Property Group up to 4.7 million gallons of treated sewer water daily for 50 years at 75 cents per 1,000 gallons. The contract provides Harlingen WaterWorks with annual payments of $1.2 million.

The players

Harlingen WaterWorks

This is the municipal utility provider responsible for managing water services and discharging treated effluent in the Harlingen area.

Rio Grande Valley Property Group

This organization is the developer involved in the agreement to build a large-scale data center campus.

Eneus Energy

This entity is the primary developer that proposed the data center project near Valley International Airport.

The details

Harlingen WaterWorks officials utilized executive sessions to finalize the agreement, citing the Texas Open Meetings Act to discuss the contract as a legal matter. Eneus Energy proposed the data center, which will sit on a 1,780-acre site near the airport.

September 16, 2025: A developer requested secrecy regarding negotiations.
September 18, 2025: Officials clarified procedures for closed sessions.
September 22, 2025: The board unanimously approved the water contract.
December 18, 2025: The developer inquired about blending potable and reclaimed water.

Roadmap

The use of the Texas Open Meetings Act to shield industrial negotiations reflects a trend in public-private partnerships where developers prioritize confidentiality to avoid public scrutiny. This approach allows local utilities to secure revenue from infrastructure assets while limiting community oversight during the planning phase.

Residents may see changes in how local treated water is allocated, as the contract commits a significant portion of the city's daily effluent output to a private campus. The deal provides the city with a steady $1.2 million annual revenue stream, potentially impacting future municipal utility budgets.

The takeaway

This agreement highlights how municipalities are increasingly treating wastewater as a valuable industrial commodity to attract large-scale developments. It suggests that community members should remain vigilant about public meetings regarding land use and utility resource distribution.