A 1,785-acre data center sets sight on development in Cameron County

Those Hidalgo County residents who value water, its availability, have to hope and pray that the AI debacle now seen in Cameron County never lands here.

It’s a story bordering on the insane, but as is so often the case, residents have no recourse but to suck it up even if the well is drying up.

The fact that these approximate 1,800-acre AI Hyperscale Data Centers are being built in many counties currently suffering from drought conditions, such as Cameron County, should make an honest politician sit up and take notice.

But instead of protecting their constituents, the powers that be at the state level shake hands with rich developers and cut a deal.

Billions of $$$

Unlike the “AI centers” located in McAllen, which are really like small office call centers located in the Chase Tower, the big ones making the news, and not in a good way, better resemble the 1,785-acre behemoth being developed in Cameron County, courtesy of a corporation based in Scotland — Eneus Energy.

According to Eneus’ own website, it chose Cameron County for its combination of unprecedented power scalability, dense fiber-optic infrastructure, and available contiguous farmland. Meaning, to buy up the 1,785 acres, it only had to deal with less than 20 land owners as opposed to 50.

Even better, for the multi-billion-dollar “AI Hyperscale” Data Centers looking to score relative cheap land, under Texas state law, cities hold broad zoning powers to block or permit developments within their municipal borders.

Texas counties, by contrast, are legally treated as administrative arms of the state and are strictly prohibited from passing general zoning or land-use laws.

In other words, they can’t prevent a large-scale AI data center that soaks up massive water and power from picking out any Texas county at will, no matter the drought conditions.

The politicians who tout “self-governance and home rule” at the state level are obviously selective when it comes to the self-governance part.

Billions of dollars are waved at them, and without a spine, they cave and say, “Welcome to Texas. Screw the land, screw the natural resources. As long as you pump enough money into the state coffers so we can facilitate our pet projects, we don’t care what in the hell you do…to the land… to the aquifers…to the beach. Just mention ‘God” when you break ground because that will help us look good to voters.”

Because we have a governor and a legislative majority party that puts business above all else, no matter the detriment to the land or its people, the future looks bleak for those with the intellectual ability or common sense needed to place a high value on water sustainability and to understand, it’s not hard, that without enough water flowing or available, we are all in a world of hurt.

For example, the city of San Marcos made headlines by using its local zoning codes to ban data center construction entirely. Most cities are expected to follow suit because the public backlash has been significant when seen — no new Data Canters here.

To completely bypass city regulations, water restrictions, and public pushback, developers have learned not to buck the city trend. So, they buy cheap farmland in unincorporated county territory and call it a win.

They often buy up the relatively cheap land with a shell LLC, spread around non-disclosure agreements (NDAs), so the word can’t get out, and when it does — new AI Hyperscale Data Center coming to (pick a Texas drought-ridden county) — the wheels of development, pending construction, are already well set into motion.

Harlingen’s Non-Transparency

In the case of Cameron County, the Harlingen City Commission passed a 120-day moratorium on new AI Data Centers, knowing full well that AI developers (the big money) have no interest in hassling with municipal zoning laws and authority, when they can go out into the county instead, buy cheaper land and face no zoning hassles. Still, on paper, it looks like they’re trying to do something.

Yet, on the other hand, the Harlingen Water-Works, which is similar to a city public utility (water and wastewater), but governed by its own independent board of directors, signed a 50-year contract with Eneus (6-0 vote) without first running the entire contract by the Harlingen mayor and city commission.

The deal with Eneus (RGV Property LLC) provides it with up to 4.6 million gallons of treated effluent (wastewater) per day to cool the massive 1,785-acre Data Center and its white-hot AI chips.

On the surface, using wastewater might sound good — no harm, no foul since it’s not drinkable — but in the case of AI, the water, most of it, simply evaporates once it cools the hot chips instead of filtering back into the groundwater, which is important for the sustainability of the local ecology, including the proper salinity of the Arroyo Colorado.

“We’re talkin’ greenback dollars, boy. Screw that conservation BS.”

Right. Anyway, the most egregious thing Water-Works did, my opinion, was to add a caveat to its contract with Eneus, unbeknownst to the city commission, which says it will provide the AI giant with up to 4.6 million gallons of potable (clean drinking water) PER DAY if the effluent doesn’t meet the technical cooling standards required for the data center servers.

Now, the city is trying to change its oversight of the WaterWorks Board, halt new applications, and legally review how the AI contract with Eneus impacts the local environment.

Too bad. The contract is already signed. And if it is, good luck with backing out of that contractual obligation without facing down a substantial lawsuit, since Eneus had already bought up the land.

Like that takes a genius to answer: Bad.

According to most legit published sources, AI Hyperscale Data Center uses the same amount of potable water per day as a city of approximately 20,000 to 50,000. Imagine five or six of those spread around the four counties that comprise the RGV where farm land is still relatively cheap even if the water is scarce.

When a spokesman for Harlingen WaterWorks told RGV media outlets that the odds of Eneus ever needing drinking (potable) water was “almost zero,” is that based on a study? From a reputable source after investigating the planned used, the definition of “technical cooling standards,” or is that just a catchy slogan — almost zero.

Ironically, maybe not, the state’s recent water use study conveniently left out AI Data Centers altogether.

Texas — the TRANSPARENT STATE.

Texas is drying up, some parts more than others, more people keep moving to the state 24/365, the electric grid is already under strain, water resources are low in Central and South Texas, but let’s keep those huge, approximately 1,800 acres, AI Data Centers coming to the state.

It’s always a case of follow the money.

Problem is, it’s not the state’s voting constituents who possess it. The money.