Project News / Water
Harlingen reviews 50-year water deal for 1,785-acre data center campus
City officials say a reclaimed-water contract with RGV Property Group may conflict with the commission's charter authority over water rates.
Harlingen is reviewing its legal options on a reclaimed-water contract that would supply a proposed 1,785-acre data center campus outside city limits. The Harlingen WaterWorks board approved the agreement with developer RGV Property Group in September 2025.
The contract provides up to 4.6 million gallons a day of reclaimed water at $0.75 per 1,000 gallons, worth about $1.2M a year. When reclaimed water falls short, the developer could buy potable water at the inside-city commercial rate of $1.83 per 1,000 gallons, below the $2.75 rate charged outside city limits.
The term runs 20 years from the start of commercial operation, with two automatic 15-year extensions, for a potential total of 50 years.
The mayor and city attorney said the City Charter reserves rate-setting authority to the city commission. That raises the question of whether the utility board could grant inside-city rates to a customer outside the city. Two city commissioners have criticized the contract, and the city says it may seek to rework it.
The review comes as Rio Grande Valley governments look more closely at data center growth. Neighboring Brownsville's 90-day moratorium on data center development takes effect Nov. 5.
RGV Property Group has not disclosed the campus's power load, end user or construction schedule.
