Fluidstack Begins $4 Billion AI Data Center Project in Cameron County
Fluidstack has commenced the initial phase of a $4 billion artificial intelligence data center campus in Cameron County, Texas, near Rio Hondo. The project is expected to create over 2,500 construction jobs and several hundred permanent positions, with Fluidstack committing to cover its own energy, infrastructure, and water costs, and pay full local property taxes. State and local officials have welcomed the investment, emphasizing the company's commitment to self-sufficiency and minimal impact on local resources.
Fluidstack has initiated construction on the first phase of a $4 billion artificial intelligence data center campus in Cameron County, Texas. Located on over 1,100 acres near Rio Hondo, the project represents a significant technology infrastructure investment for the region.
The company, an American builder of AI infrastructure, anticipates the development will generate more than 2,500 construction jobs and several hundred permanent roles. Fluidstack states the project complies with data center requirements set by Gov. Greg Abbott, the Public Utility Commission of Texas, the Electric Reliability Council of Texas, and Cameron County.
A central aspect of Fluidstack's plan is its commitment to financial independence, covering all its energy, infrastructure, and water costs. Kate Franko, Fluidstack's head of public affairs, highlighted that the company has not sought or received local property tax abatements or county incentives, instead pledging millions in annual contributions to the local tax base. Furthermore, the project addresses water usage concerns by employing a closed-loop cooling system, which will be filled once by the East Rio Hondo Water Supply Corporation and continually recycle water.
Cameron County Commissioner David A. Garza and State Sen. Adam Hinojosa both commended Fluidstack's approach, particularly its commitment to pay for its own resources and local taxes, and its low water usage. Senator Hinojosa, who advocates for a “Gold Standard” in responsible data center development, viewed Fluidstack's actions as an example of responsible growth that supports communities without straining local resources. Fluidstack also committed to prioritizing local workers and is developing additional community benefit agreements.