Fluidstack Breaks Ground on $4 Billion Data Center Campus in Cameron County

Fluidstack has commenced construction on the first phase of a sprawling data center campus in Cameron County, Texas, marking a significant new chapter in the Rio Grande Valley's emergence as a destination for large-scale digital infrastructure investment. The $4 billion project, situated on more than 1,100 acres east of Valley International Airport and west of the Port of Harlingen near Rio Hondo, represents one of the largest private capital commitments ever made in the region and underscores the growing appetite for compute capacity across the United States.

The development is expected to generate more than 2,500 construction jobs and several hundred permanent positions, according to a company news release issued Thursday. Fluidstack said it will cover all energy, infrastructure and water costs associated with the campus, with no expenses passed on to local residents. The project also comes with no local property tax breaks and will add millions of dollars annually to the local tax base.

The company emphasized that the facility complies with directives from Texas Governor Greg Abbott, the Electric Reliability Council of Texas, the Public Utility Commission of Texas and the Cameron County Resolution on data centers. Fluidstack is also developing community benefit commitments with local leaders, with details to be announced as agreements are finalized. The campus will utilize closed-loop cooling supplied by East Rio Hondo Water Supply Corporation — a system the company says uses less water than an Olympic-sized swimming pool, filled once and recycled indefinitely.

"We pay our own way: our energy, our infrastructure, our water and full local property taxes and we build to the Governor's standards from day one," said Fluidstack spokesperson Kate Franko. "The Rio Grande Valley knows how to build big things and we're hiring here first for construction, electrical, skilled trades and permanent operations careers. We welcome oversight from elected officials and if a neighbor ever has a concern, we'll address it quickly."

The announcement comes a week after Harlingen city commissioners tabled a drainage agreement that would have allowed Fluidstack to route stormwater into a city-owned canal. Franko said the company received a worksite permit from Cameron County and will pursue alternative plans for wastewater discharge. Harlingen Mayor Norma Sepulveda, in a statement issued on social media, acknowledged that the project was moving forward "with or without the city of Harlingen," noting that the campus was not located within city limits and that Harlingen lacked the authority to stop it. She also stated that $20 million previously proposed for infrastructure improvements in Harlingen would instead go to Cameron County as part of the alternative arrangement, adding that she had received no communication from the county about the change.

Cameron County Commissioner David A. Garza, whose precinct includes the area where the campus will be built, welcomed the project. "They are investing in and paying for their own energy and infrastructure, ensuring those costs do not fall on our residents," Garza said. "They will also pay their full share of local taxes, while maintaining extremely low water usage — an especially important consideration for our region. Just as importantly, Fluidstack is working with local leaders to help address longstanding regional challenges. We welcome their investment and look forward to the economic opportunities this project will bring to Cameron County."

Not all local officials have embraced the development. Congressman Vicente Gonzalez expressed opposition, citing the region's water scarcity and the energy-intensive nature of data centers. "While I fully support commercial growth and economic development, it cannot come at the expense of resources our region urgently needs," Gonzalez said in a statement. "South Texas is facing a water shortage, and data centers are energy-intensive and large water consumption facilities that will place significant new demands on already strained communities. We must be able to reliably serve homes and businesses before looking to build or expand data centers. Until we have an abundance of water, a reliable energy grid, and a well-thought-out plan for the future, I continue to oppose the development of these facilities."

The Cameron County project highlights the broader tension across the United States between the accelerating demand for data center capacity driven by artificial intelligence and cloud computing, and growing concerns over resource consumption in water-stressed and energy-constrained regions. As hyperscalers and AI infrastructure developers race to secure land, power and water in favorable jurisdictions, projects like Fluidstack's will increasingly be scrutinized for their environmental footprint and community impact. How the company navigates local opposition and delivers on its commitments in Cameron County could set a precedent for how similar developments are received across the Rio Grande Valley and beyond.