Texas Border Business
Texas Border Business
CAMERON COUNTY, Texas — Fluidstack has begun construction on the first phase of a $4 billion artificial intelligence data center campus in Cameron County, bringing one of the region’s largest technology infrastructure investments to more than 1,100 acres near Rio Hondo.
The campus will be developed east of Valley International Airport and west of the Port of Harlingen. Fluidstack, which describes itself as an American builder of AI infrastructure, said the project is expected to generate more than 2,500 construction jobs and several hundred permanent positions.
The company said the project is being developed to comply with data center requirements established by Gov. Greg Abbott, the Public Utility Commission of Texas, the Electric Reliability Council of Texas and Cameron County.
A key part of Fluidstack’s announcement focuses on how the massive project will use local resources. The company said it will pay for its own energy and infrastructure and has neither requested nor received local property tax abatements or county incentives. Fluidstack said the development will instead contribute millions of dollars annually to the local tax base supporting schools and county services.
“We pay our own way: our energy, our infrastructure, our water, and full local property taxes,” said Kate Franko, Fluidstack’s head of public affairs.
The project plans also address water use, an important issue for major developments in the Rio Grande Valley. Fluidstack said the campus will use a closed-loop cooling system with a tank holding less water than an Olympic-size swimming pool. The system will be filled once and will continually recycle the water, which East Rio Hondo Water Supply Corporation will supply rather than a municipal system.
Cameron County Commissioner David A. Garza welcomed the investment, emphasizing the company’s commitment to paying for its infrastructure and local taxes.
“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.”
State Sen. Adam Hinojosa said data center development should strengthen communities without placing additional pressure on their resources.
Hinojosa said he has advocated for a “Gold Standard” for responsible data center development that protects water, electricity and other critical resources while leaving decisions about such projects with individual communities.
He said Fluidstack’s commitment to securing its own power and water resources, coordinating with local leaders and creating good-paying jobs represents “the kind of responsible growth we can get behind in the Rio Grande Valley.”
Fluidstack also committed to seeking local workers wherever possible, including for construction, electrical, and operations positions that do not necessarily require four-year college degrees. The company said it is developing additional community benefit commitments with local leaders and will announce them as agreements are finalized.
