Water infrastructure and municipal service capacity are central to a new community investment agreement tied to data center development near Turkey, Texas. QTS Data Centers and Lancium announced the agreement with the city on Oct. 9, 2026, outlining funding for local services and infrastructure priorities identified by municipal leaders.
Under the agreement, the city is expected to receive annual payments of $1.5 million through 2032, totalling $10.5 million. The funding can support city services, infrastructure and other priorities permitted under the agreement.
The arrangement also provides for up to $5 million in additional infrastructure assistance for projects such as road improvements, utilities, drainage and public facilities. The data center campus is located near Turkey but outside the city's limits.
A separate, one-time contribution will support replacement of Turkey's aging water tower and improvements to its sewer system. The water infrastructure commitment forms part of the broader context of QTS's previously announced plan to invest $250 million in Texas water infrastructure and stewardship over the next decade.
Work on the water tower is expected to begin by the end of 2026, according to the announcement. Annual payments under the city agreement are also expected to start in 2026.
The planned improvements address essential municipal infrastructure alongside the development of a large-scale data center campus. Roads, utility systems, drainage and water facilities are among the infrastructure categories identified for potential support through the agreement.
The agreement illustrates how data center development can be accompanied by funding arrangements for municipal infrastructure and public services. For local authorities, such agreements can provide resources for improvements associated with community priorities, while developers establish commitments connected to projects in the surrounding area.
For construction contractors and infrastructure providers, the identified work areas include water tower replacement, sewer improvements, roadworks, utility upgrades, drainage and public facilities. Specific project scopes, procurement arrangements and construction budgets beyond the announced funding commitments have not been disclosed.
Source: QTS.
