Last week the City of Bossier (City) entered into a Water Services Agreement with TXLAAR, LLC. (Developer) of the planned Benton data center.
Here is a summary of the contract:
1. The Developer will need a peak daily demand of approximately 1.8 million gallons per day of water for domestic, fire protection and industrial cooling in the initial phase. Over time the developer may need a daily peak up to 13.5 million gallons of water per day.
2. The City’s existing water systems are adequate to support the anticipated water demands without any upgrades to these facilities
3. Certain water infrastructure improvements are required to convey City water volumes for the anticipated demand.
4. The developer will hire the engineering firm that provides services for the City to design the water infrastructure improvements to transport the needed water to the data center.
5. The developer will pay all costs and expenses for installing the water infrastructure improvements.
6. The City will hire inspectors for the construction of the water infrastructure improvements and be reimbursed for inspection fees up to $500,000.
7. The Developer will convey to City at no cost the constructed water transmission improvements upon completion, and thereafter City will be responsible for the operation, maintenance, repair, capital improvement, and upgrade, as necessary.
8. The City will charge “water rates based on actual measured water usage consistent with rates for similar use types approved by City Ordinance.”
Public records requests have been made to the Town of Blanchard and the City of Shreveport for copies of any water services agreements executed in contemplation of data center construction. It is anticipated that these agreements will be similar to the Bossier agreement. Upon receipt, reviews of the contracts will be published on Settle Talk.