Lacy Lakeview considers using wastewater to supply proposed data center

Lacy Lakeview considers using wastewater to supply proposed data center

News ClipKWTX·Lacy Lakeview, McLennan County, TX·3/25/2026

Lacy Lakeview, Texas, is considering using treated wastewater for a proposed data center that would require millions of gallons daily. Despite environmental concerns raised by residents, the City Council approved a Project Development Agreement with Energy Systems Group (ESG) to conduct further studies. This agreement allows for detailed evaluations of costs, environmental impact, and design before a final decision is made.

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Gov: Lacy Lakeview City Council
A significant development is underway in Lacy Lakeview, Texas, where a proposed data center faces scrutiny over its substantial water demands. City officials are exploring an innovative solution involving treated wastewater to meet the facility's operational needs, which could amount to millions of gallons daily. This approach aims to circumvent reliance on the city's existing drinking water supply. Energy Systems Group (ESG) presented a "sewer mining" plan to the Lacy Lakeview City Council. This method involves capturing and treating wastewater already leaving the community through advanced membrane technology, producing high-quality reclaimed water suitable for cooling the data center. Randall Nelson, representing ESG, emphasized that the system would convert waste into a resource, avoiding groundwater or potable water use. ESG projects the facility could process approximately two million gallons of water per day, with the system designed to be compact, enclosed, and minimize noise and odor. The proposal has generated local concern, particularly from residents like Carla Garcia, who questioned ESG's experience with data centers and highlighted potential environmental risks. Concerns include the use of chemical additives such as biocides and corrosion inhibitors, which residents fear could harm local plants and fish, as well as the potential for thermal pollution affecting ecosystems. Despite these apprehensions, the City Council moved forward by approving a Project Development Agreement with ESG. This approval grants ESG permission to conduct more detailed studies, encompassing cost analysis, environmental impact assessments, design plans, and potential funding avenues like grants and low-interest loans. City leaders clarified that this agreement is not a final project endorsement but a crucial step to gather necessary information before making an ultimate decision on the data center's development.