In drought-parched South Texas, plans for a $14 billion data center are drawing scrutiny from residents and prompting local leaders to go on the record saying they support economic development, but not at a price that outpaces and strains precarious natural resources.
Over the last week, officials in Cameron County and the city of Harlingen have begun examining the issue after a Scottish “green energy” company, Eneus Energy, began showing interest in the Rio Grande Valley, which is currently in the midst of a massive industrial revolution thanks to companies like SpaceX and Rio Grande LNG, as well as proposals for a high-tech military shipyard and an oil refinery touted by President Donald Trump. However, Eneus’ interest has spurred public backlash from locals who worry that a water- and power-hungry facility could sap resources that are already at the brink due to a years-long drought.
On Tuesday, April 7, the Cameron County Commissioners Court responded to that concern by unanimously passing a resolution that aims to put guardrails on how data centers would operate in the region. But county leaders admitted that Texas law gives them limited regulatory authority.
The county “supports responsible economic development; however, the court formally expresses opposition to the use of open-loop evaporative cooling systems or other high-volume potable water consumption technologies in large scale,” Cameron County Judge Eddie Trevino Jr. said, reading from the resolution.
“The court further opposes any data center development that fails to incorporate adequate safeguards to protect our county’s natural resources,” he said.
The resolution also calls for “full and transparent public reporting” of electricity and water usage and impacts to public infrastructure, local agriculture and habitat. And it urges lawmakers to pass legislation giving local governments more “meaningful” participation in such developments.
Eneus is looking to build the so-called “RGV Data Center” in phases on a 1,785-acre site of farmland east of Valley International Airport, just outside city limits. The facility would generate 2 gigawatts of power capacity across “16 typically sized data halls,” according to the company’s website. Eneus says the project means more than $14 billion in investment that would generate more than $9 billion in economic impact and more than 1,000 jobs through 2045. Some 360 of those jobs would be at the data center itself.
The company also plans to reduce environmental impacts by relying on a “closed-cycle cooling system” using “locally sourced reclaimed wastewater” rather than potable water and “advancing a flexible power strategy” that would minimize strain on the local power grid.
Like Cameron County leaders, Harlingen officials say they also have little control over regulating the proposal due to the site’s location outside the city limits. Nonetheless, last week, the Harlingen City Commission began the process to consider a citywide moratorium on data centers — a process that requires a specific legal process.
“Rest assured that your city commission is working hard making sure that the steps that we take moving forward are responsible steps,” Mayor Norma Sepulveda said.
“City governments cannot just say we’re gonna have a moratorium on data centers without those public hearings. … If we could get to that goal sooner, then we would. But we have to abide by the law,” she added.