Hut 8 says AI data center near Robstown won't use local water, but key questions remain
Hut 8 is proposing a 525-acre AI data center campus near Robstown, Texas, with an estimated $17 billion investment, but faces significant questions regarding its timeline, economic impact, and agreements with local government. Concerns from residents and environmental groups focus on water usage during drought conditions and the project's substantial power demands. While Hut 8 states the facility will use a closed-loop cooling system and fund infrastructure upgrades, Nueces County has indicated no final agreement has been reached and tax incentives are not currently being considered.
A proposed 525-acre artificial intelligence data center campus by Florida-based Hut 8 in Nueces County, near Robstown, Texas, is advancing, though key questions persist regarding its timeline, economic benefits, and agreements with local authorities. Hut 8 projects an investment of approximately $17 billion for the first two phases, creating 1,900 construction jobs and about 230 permanent positions.
Water consumption is a significant concern for residents due to ongoing drought conditions in South Texas. Hailey Miller, Hut 8's senior director of regulatory and government affairs, stated the facility would employ a closed-loop cooling system, using water trucked in from off-site and recirculated throughout the project's lifespan. Power demand is another major point of discussion, with Miller asserting the facility would not raise residential electric rates and Hut 8 would finance necessary infrastructure upgrades. However, AEP Texas representatives noted that large electrical customers must undergo ERCOT's review process to verify generation and infrastructure capacity before connecting to the grid. Jim Klein, President of the Coastal Bend chapter of the Sierra Club, expressed skepticism about the data center industry's claims, referencing past water usage concerns from projects he monitored during his time on the Corpus Christi City Council.
Miller emphasized Hut 8's commitment to creating long-term economic benefits, including local job creation and nearly $1 billion in economic impact for the Coastal Bend. She also mentioned the company's focus on community engagement, drawing lessons from its first AI data center campus in River Bend, Louisiana. Hut 8 aims to commence construction in the third quarter of 2026. Despite these plans, the office of Nueces County Judge Connie Scott confirmed to 3NEWS that no final agreement has been reached and the county's tax abatement policy has expired, meaning no tax incentives are currently being considered for the project. The identity of the major technology company expected to occupy the facility, with whom Hut 8 has a multi-billion-dollar agreement, also remains undisclosed.