Fluidstack breaks ground on $4 billion data center project in Cameron County

Fluidstack has commenced preparatory work for a $4 billion data center campus near Rio Hondo in Cameron County, Texas. While a worksite permit allows for land preparation, utility installation, and infrastructure like roads and retention ponds, the company still requires additional permits for the actual data center buildings. Fluidstack stated its commitment to following Cameron County's data center resolution and Governor Greg Abbott's directives regarding infrastructure costs.

The company plans for the campus to span over 1,000 acres, powering its operations through a combination of Texas electricity purchases and on-site generation, covering its own energy and infrastructure expenses. This aligns with Governor Abbott's mandate requiring data centers to bear these costs rather than passing them to residential customers.

A dispute has emerged with the city of Harlingen regarding drainage. Harlingen Mayor Norma Sepulveda reported that Fluidstack is pursuing an alternative drainage plan after Harlingen commissioners tabled a proposed $7 million agreement for drainage improvements. The mayor expressed concerns about the impact on Harlingen and Valley International Airport if these improvements are not made, stating that Fluidstack's proposed $20 million investment in Harlingen infrastructure will now go to Cameron County. Fluidstack confirmed it is exploring alternative wastewater discharge plans but did not provide specifics.

Congressman Vicente Gonzalez voiced significant concerns about the project, highlighting South Texas's water shortage and the energy-intensive, high-water consumption nature of data centers, which he believes will strain already vulnerable communities.