Garland weighs NTMWD board candidates amid concerns over data center water demand and regional debt
City of Garland Water Utilities, Texas · Meeting date: May 18, 2026 · Published: May 26, 2026
As wholesale water costs surge and regional growth strains raw water supplies, Garland City Council interviewed candidates for its NTMWD board seat, with applicants proposing strategies ranging from stringent conservation to shifting infrastructure debt onto high-growth suburbs.
Key points
- Incumbent Jack May noted that wholesale water rates have soared from 71.9 cents per 1,000 gallons in 2010 to a projected $4.14, warning that the pursuit of new raw water supplies will drive costs even higher.
- Multiple candidates highlighted the looming threat of AI and data centers, noting the facilities will require massive amounts of water and strain the district's long-term resource planning.
- Candidate Joseph Dirik proposed restructuring the district's debt so that high-growth member cities bear a disproportionate share of the costs for new infrastructure, rather than splitting it evenly with built-out cities like Garland.
- The NTMWD, which oversees a nearly $1 billion budget, relies heavily on water reuse, operating a 2,000-acre wetlands center to recycle treated wastewater.
Full report
The City of Garland is grappling with how best to protect its interests within the North Texas Municipal Water District (NTMWD) as regional growth, soaring infrastructure costs, and a boom in data centers threaten to drive up wholesale water rates. During a May 18, 2026, work session, the Garland City Council interviewed several candidates for a seat on the 25-member NTMWD board of directors, revealing deep concerns about the district's long-term capital plans and rate trajectory.
Jack May, a 16-year incumbent on the board and former managing director of Garland's water utilities, highlighted the staggering financial impact of the region's water scarcity. He noted that when he retired from the city in 2010, wholesale water cost 71.9 cents per 1,000 gallons; next year, that rate is projected to hit $4.14. May warned that as the district searches for new raw water supplies to support an influx of 85,000 new regional residents annually, the financial burden will inevitably compress local utility budgets and force rate hikes.
The rapid expansion of data centers and AI facilities repeatedly surfaced as a critical threat to the region's water security. Candidate Peter Zehr, a former chemical manufacturing CEO, pointed to astronomical demand forecasts for data centers, emphasizing the need for the NTMWD to find efficiencies within its nearly $1 billion budget to offset necessary capital expenditures. Clayton Waddle, an underground utility construction director, cautioned that the district cannot simply build its way out of the supply deficit. Waddle advocated for aggressive, Las Vegas-style conservation measures—such as eliminating decorative turf and installing purple-pipe reuse systems—as the only viable short-term solution.
The interviews also exposed underlying tensions between fully developed member cities like Garland and rapidly expanding suburbs like McKinney and Frisco. Joseph Dirik, a civil engineer and construction lawyer, suggested a fundamental shift in how the NTMWD finances its capital improvement program. Rather than splitting costs evenly among the 13 member cities, Dirik proposed that high-growth cities driving the need for new infrastructure should bear a disproportionate share of the district's debt. Dirik also suggested that Garland, which operates its own wastewater treatment plants independent of the NTMWD, could potentially monetize its underutilized facilities by selling excess capacity back to the district.
The NTMWD relies heavily on water reuse to meet regional demand, with May noting the district operates a 2,000-acre wetlands center to filter and recycle treated wastewater from the Trinity River. However, with the district facing complex regulatory hurdles to expand infrastructure—such as a multi-year permitting process with the Army Corps of Engineers for a new intake at Lake Lavon—candidates agreed that managing demand will be just as critical as sourcing new supply.
The Garland City Council is scheduled to formally appoint its NTMWD representative at its regular meeting on May 19.
This summary was generated by AI based on the source document and may contain errors.
Source: City Council Work Session, City of Garland Water Utilities