WESLACO, Texas — In what regional leaders are hailing as a historic move for South Texas, the Lower Rio Grande Valley Development Council (LRGVDC) has unanimously approved a landmark Community Benefit Agreement (CBA) term sheet designed to give local municipalities leverage when negotiating with hyperscale AI data center developers.
Crafted by the RGV Broadband Coalition in tandem with Connect Humanity and the LRGVDC Economic Development Advisory Committee, the legally binding framework sets enforceable standards for major technological developments. In exchange for community support and regulatory backing, data center operators will be required to contribute directly to local infrastructure, environmental safeguards, workforce training, and regional connectivity.
The agreement covers Cameron, Hidalgo, Willacy, and Starr counties.
Data center projects across the country consume vast amounts of land, water, and electrical grid capacity—often while benefiting from local tax incentives. The newly adopted CBA establishes a proactive, regional mechanism to ensure local communities secure tangible economic and environmental returns before projects move forward.
According to LRGVDC officials, the Rio Grande Valley appears to be setting a national precedent.
“About two months ago, the National Association of Development Organizations sent out a survey to see who all had community benefit agreements,” said Manuel “Manny” Cruz, executive director of the LRGVDC. “We do not know of any in the State of Texas.... we're hopeful that we're the first Council of Governments to put this on our board and pass [it],and we’ll have it available as a resource to anybody who would want a copy.”
Cruz emphasized that the agreement serves as a flexible template for local leaders. “This is basically a contract that can be executed between a city, a local government, or a developer to try to identify any tangible resources that they can leverage to be better off at the end of the day,” Cruz noted. “You have a tool in your toolbox, so to speak, to be able to negotiate different aspects from the city's standpoint.”
The development of the CBA involved months of community workshops bringing together roughly 50 local participants, policy experts, and regional stakeholders.
Jordana Barton-Garcia, director of the RGV Broadband Coalition with Connect Humanity, highlighted that environmental preservation—particularly regional water security—was the single greatest concern raised during community sessions.
“Water was the biggest word on the word cloud,” Barton-Garcia said. “The agreement contains practices to avoid overuse and misuse of water or energy, and to mitigate emissions because a lot of them are using on-site generation... Pretty much everybody at the table didn't want to go forward unless there could be those agreements, because obviously the well-being of the community comes first.”
Beyond imposing usage caps and requiring closed-loop cooling systems, the CBA template allows local municipalities to negotiate developer investments directly into municipal drainage, wastewater treatment, and regional water infrastructure.
Unlike tech corridors in North Texas and out-of-state markets where local hiring was minimal, the RGV framework mandates direct investment in the Valley's workforce ecosystem.
The CBA aligns with existing regional initiatives, including fiber optic technician training programs, trades, journeymen, cybersecurity pathways, and partnerships with adult high schools, community colleges, Texas A&M, and the University of Texas Rio Grande Valley (UTRGV).
Furthermore, the CBA addresses broadband access by requiring developers constructing long-haul fiber optic lines for data centers to build extra conduit capacity. This infrastructure can serve as a “public middle mile,” enabling regional Internet Service Providers (ISPs) to deliver high-speed, affordable broadband—such as $25-per-month high-speed plans—to underserved colonias and rural communities without bearing massive capital expenditures.
“You have these huge companies... you don't need to be shy about what you need, what you require, and what will work and be a win-win,” Barton-Garcia stated. “Democracy is a conversation... With AI data centers, people are united. 69% are opposed to data centers, so we have a good place to start the conversation. It's bipartisan.”
Following the unanimous vote, the LRGVDC and the RGV Broadband Coalition plan to meet with mayors, county judges, and city commissioners across all four counties to assist local leadership in customizing the document for individual municipal needs.
The term sheet, along with workshop materials and reference guides, will be published on the RGV Broadband Coalition and LRGVDC websites for public inspection.
Cruz extended credit to LRGVDC Director of Economic Development Melisa Gonzales-Rosas and the RGV Broadband Coalition for spearheading the regional policy effort.
