Harlingen mayor pushes back on potential $14B data center

Harlingen Mayor Norma Sepulveda says she does not currently see a clear benefit to the city from a proposed multibillion-dollar data center planned just outside city limits, as questions mount over water use, electricity demand, and long-term infrastructure impacts.

Sepulveda took to social media on Thursday to say she met directly with representatives from Eneus Energy, the developer behind the proposed RGV Data Center.

“It was a brief meeting, but it was necessary,” she said, without disclosing the date.

Sepulveda said she went into the meeting with a long list of questions. Many came from residents. Others were based on what she learned while speaking with mayors across the country who already have data centers operating in their communities.

“I did not get all the answers I wanted,” she said about the meeting. “Because of that, we are in the process of setting up another meeting.”

The proposed campus would sit outside Harlingen city limits on roughly 1,780 acres east of Valley International Airport in Cameron County.

“However, boundary lines do not prevent impact,” Sepulveda said. “If something affects our regional water supply, our utilities, or surrounding infrastructure, it matters to Harlingen whether it sits just outside city limits or not.”

Sepulveda said she is working with the city attorney on a local ordinance and a potential moratorium to ensure guardrails are in place if a formal proposal comes before the Harlingen City Commission.

Scale of the proposal

The proposed RGV Data Center could represent more than $14 billion in capital investment and generate more than $9 billion in economic impact through 2045, according to the company’s filings with the Texas Public Utility Commission and promotional materials.

Eneus plans to build up to 16 data halls to support artificial intelligence, cloud computing, and data analytics. 

At full buildout, the campus could require as much as 2 gigawatts of electricity. An initial 1-gigawatt phase — roughly enough to power about 250,000 homes — would be constructed in stages to align with available infrastructure capacity.

The company estimates the project could support about 1,000 jobs over time, including roughly 360 permanent operations positions.

To address water concerns, Eneus says it would use reclaimed wastewater rather than potable water for cooling. 

In September, the company reached an agreement with Harlingen WaterWorks System to supply about 4.6 million gallons per day of treated effluent, a volume that could generate roughly $1.2 million annually for the utility.

Founded in 2013 as a green hydrogen developer, Eneus has since expanded into digital infrastructure. Its investors include The Carlyle Group and GIC, a Singapore-based sovereign wealth fund.

“The RGV data center is a next-generation digital infrastructure project designed to power Texas’s future while supporting local growth in Cameron County,” the company said in its PUC letter.

County: limited authority, ongoing review

Cameron County Judge Eddie Treviño Jr. addressed the broader issue in a Jan. 13 statement, saying the county is conducting its due diligence.

“As interest in the construction of a data center in Cameron County grows, it is important to acknowledge and respect the legitimate concerns raised by our community,” Treviño said, adding that the county is reviewing studies from other regions and evaluating potential impacts related to land, water, and energy consumption.

Treviño also emphasized that the county may not be able to stop the development. 

“If a business complies with applicable state and federal regulations, as well as local permitting requirements outside the County’s jurisdiction, the County has limited ability to restrict that business’s operations,” Treviño wrote. 

At the time of his statement, Treviño said the county had not been presented with a formal proposal or permitting application for construction of a data center.

What comes next

Sepulveda said she plans to visit other communities that already host data centers to better understand long-term impacts and what local governments require before approving similar projects.

“As of today, I do not see a clear benefit to the City,” she wrote. “That does not mean the conversation is over. It means the burden is on the developer to demonstrate value and protection.”