Questions remain as proposed AI data center campus moves forward in Nueces County
Nueces County commissioners are reviewing a proposed AI data center campus near Robstown by Hut 8. While Hut 8 states the facility will use a closed-loop cooling system with trucked-in water and won't raise residential power rates, environmentalists and county officials still have questions regarding water usage, energy infrastructure, tax abatements, and the unnamed major technology tenant. The county's tax abatement policy for such projects has expired, meaning no tax breaks are currently on the table.
Nueces County commissioners are reviewing a proposed 525-acre AI data center campus near Robstown, Texas, spearheaded by Florida-based company Hut 8. The project, which could involve billions in investment, is facing scrutiny regarding its environmental impact, particularly water and electricity consumption, given an ongoing drought.
Hut 8 representatives, in an interview with reporter Ryan Hopper, stated that the facility would utilize a closed-loop cooling system, with water trucked in from off-site and recirculated throughout the project's life. They also assured that infrastructure upgrades required to connect the campus to the grid would be pre-funded by Hut 8, preventing residential rate increases. AEP added that large customers must clear a process with ERCOT to ensure sufficient generation capacity, with energy rates set by the Public Utility Commission.
Environmentalist Jim Klein, a former Corpus Christi City Council member, expressed skepticism, citing past instances where he claims a different data center company misrepresented its water usage. He also questioned the economic impact projections by Hut 8. County officials confirmed that no final agreement is yet in place for the project and that the county's tax abatement policy has expired, removing potential tax incentives. Furthermore, Hut 8 has not disclosed the identity of the major technology company it has a multi-billion dollar deal to serve as a tenant.