Data center developer pursuing Cameron County sues to block release of project records

The developer pursuing a proposed Cameron County data center project has sued Cameron County and Texas Attorney General Ken Paxton in an effort to block the release of project records it argues contain confidential business information.

Eneus Energy filed suit May 13 in Travis County’s 353rd District Court seeking a temporary injunction and declaratory relief after the Texas Attorney General’s Office determined portions of requested project records should be released under the Texas Public Information Act.

The lawsuit lands as South Texas communities increasingly scrutinize large-scale data center development and the infrastructure demands tied to artificial intelligence and cloud computing facilities.

Company alleges state missed filing

At the center of the dispute is a Jan. 8 public information request by Erin Dahl, who was not identified in court documents. The request sought records tied to the proposed project, including project timelines, water impacts, power demand, incentives, land ownership information, confidentiality agreements, and communications involving the company and public officials.

Eneus argues the Attorney General’s office issued its April ruling without reviewing materials the company says it submitted in February.

“The Decision states, ‘As of the date of this letter, we have not received comments from Eneus Energy explaining why the submitted information should not be released,’” attorneys for Eneus wrote in the lawsuit.

“Eneus timely provided a submission to the Texas Attorney General’s office on February 3, 2026.”

The lawsuit further alleges an assistant attorney general confirmed during multiple phone calls that Eneus’ submission “had been received but had not been included in the review file of information used to produce the Decision.”

Eneus is asking the court to block Cameron County from releasing records while litigation proceeds.

Company argues release could help competitors

The company argues disclosure could expose proprietary information tied to transmission access, infrastructure strategy, growth projections, expansion plans, and construction costs.

“A competing data center developer or large load project developer would be able to use this information to ascertain Eneus Energy’s ability to access transmission capacity, a finite resource,” Eneus argued in court filings.

The company further argued competitors could use Eneus’ expansion plans “to inform its own expansion plans and undercut Eneus Energy’s planning.”

The lawsuit argues disclosure “would cause substantial competitive harm” by giving competitors “an intimate view into Eneus Energy’s financial health, proposed siting and growth projections, and where it may be vulnerable.”

Court filings indicate company materials include transmission interconnection information, siting strategy, growth planning information, expansion timelines, and infrastructure-related project details.

The company additionally argues no agreement currently exists between Cameron County and Eneus — a point central to portions of its confidentiality claims.

Valley officials weigh infrastructure concerns

The lawsuit arrives as local governments across South Texas increasingly debate how large-scale data centers affect water supplies, electrical capacity, and long-term infrastructure planning.

Last week, Harlingen commissioners approved a temporary 120-day moratorium on high-intensity data processing facilities while city staff evaluate water supply, wastewater capacity, electrical demand, and zoning standards.

“Communities across Texas are weighing the strain these facilities place on the power grid, water supply, and surrounding land use,” Harlingen Commissioner Daniel N. Lopez said.

Cameron County has also signaled increasing caution.

County commissioners recently adopted a resolution outlining concerns tied to large-scale data center development, including water consumption, electricity demand, infrastructure strain, utility costs, and impacts on surrounding communities.

County leaders said growth must occur “in a manner that protects grid reliability, water sustainability, fiscal integrity, and the quality of life of existing residents.”

The county has also called for independent studies examining electricity transmission capacity, water availability, land use impacts, and taxpayer costs tied to future projects.

The Eneus lawsuit offers a glimpse into some of the same infrastructure considerations increasingly shaping public debate around large-scale digital infrastructure projects.

The case remains pending.