A proposed data center project in Haines City has been placed on hold after city officials determined the municipality does not currently have sufficient water capacity to support the facility.
Texas-based developer Cielo Digital Infrastructure has expressed interest in building a data center near Marion Road and State Road 544 East. According to city officials, the proposed facility would require approximately 150,000 gallons of water per day to operate. However, Haines City has indicated that its existing water allocation cannot accommodate the additional demand.
The water shortage is tied to the city’s rapid growth in recent years. New residential developments, commercial projects, and expanding infrastructure have increased demand on local water resources. City officials have been seeking approval from the Southwest Florida Water Management District since 2022 to increase the city’s permitted water withdrawals.
Officials said no formal development applications for the data center have been submitted. Before the project can advance, the city must obtain approval from state regulators for a pending modification to its water-use permit.
The proposed project is the latest example of infrastructure challenges facing rapidly growing Florida communities as they balance economic development with utility capacity. Data centers, which support cloud computing and artificial intelligence operations, often require substantial amounts of water and electricity for cooling and operations.
For now, the future of the Haines City facility remains uncertain, with its progress dependent on whether additional water capacity becomes available and regulatory approvals are secured.
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