The Rio Grande Valley City of Harlingen hit pause last week on the review and approval process for data centers for 120 days while the city evaluates its land use regulations.
The city, which sits a short 30-minute drive from the United States-Mexico border and an hour away from Elon Musk’s Starbase, is looking to go into the weeds on how data centers impact Harlingen’s electricity demands, wastewater capacity and overall water supply, according to the San Antonio Business Journal. The City Council approved the moratorium on Wednesday with one dissenting vote.
A memo from city officials states that current data center projects would require the relatively small South Texas city to supercharge its public infrastructure in a way that is “inconsistent with responsible municipal planning,” according to the outlet. The 120 days give the city time to adjust their land regulations to future-proof any upcoming data center plans.
In late 2025, U.K. developer Eneus Energy revealed plans for an 1,800 acre data center just outside Harlingen city limits. The “Capital City of the Rio Grande Valley” itself is just a tad bit over 40 square miles. Eneus is currently under contract for the land, and has filed for an injunction with the Texas Attorney General’s office to stop the release of records tied to the development. The company thinks the AG’s office will issue a favorable ruling for them, but has not tied the ruling to a date, according to the outlet.
Across the Lone Star State, data centers have been appearing like bluebonnets after a spring rain: coating the countryside overnight. Local government officials across the state have been largely pushing back on the developments, citing intense local dislike and a lack of tools to give their citizens reassurances on resource impacts.
Others, such as Guadalupe County in the Austin-San Antonio corridor, have recently provided tax incentives to welcome the developments. Denver-based Cloudburst Data Centers was awarded an estimated $500 million tax abatement and a 10-year development agreement in April to build a 220-acre campus by the county.
— Hunter Cooke
Read more
