SHREVEPORT WATER SERVICES AGREEMENT FOR SHREVEPORT DATA CENTER

Last month the City of Shreveport (Shreveport)) entered into a Water Services Agreement with TXLAAR, LLC. (Developer) for the planned Shreveport data center.
 
Here is a summary of the contract:
 
1. The Developer will use up to 7.5 million gallons per day (MGD) of Shreveport water for domestic and industrial cooling purposes and will generate up to 2.5 MGD of domestic wastewater and cooling water blowdown.
 
2. Water and wastewater infrastructure improvements are needed to convey up to 7.5 MGD of Shreveport water to the data center and to transport up to 2.5 MGD of domestic wastewater and cooling water blowdown away from the data center to Shreveport’s water facility.
 
3. The Developer will, at its sole cost and expense, design and construct water and wastewater infrastructure improvements to convey at least 7.5 MGD of Shreveport water to the data center and to transport at least 2.5 MGD of domestic wastewater and cooling water blowdown from the data center to Shreveport’s water facility for treatment and discharge.
 
4. The Developer will pay Shreveport for inspection fees on the added infrastructure not to exceed $500.000.
 
5. Upon completion of the infrastructure improvements, the Developer will convey to Shreveport the infrastructure improvements, at no cost, and thereafter Shreveport will be responsible for the operation, maintenance, repair, capital improvement, upgrade, as necessary.
 
6. The data center “will be charged water rates based on actual water usage consistent with City rates for Industrial users as codified by City Ordinance. The Property will be charged sewer rates, consistent with City rates for Industrial users as codified by City Ordinance. Sewer billing for the Project will be calculated at 35% of metered water usage.”
 
It is noted that unlike the water agreements entered into with the City of Bossier and the Town of Blanchard, the Shreveport agreement encompasses “domestic wastewater and cooling water blowdown.”