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Fluidstack has begun the first phase of a $4 billion AI data center campus in unincorporated Cameron County after local authorities issued a worksite permit for the site.
The project covers more than 1,100 acres east of FM 509 and west of FM 106, east of Valley International Airport in Harlingen and west of the Port of Harlingen near the City of Rio Hondo. According to the company, the campus is being developed to comply with directives from Governor Greg Abbott, requirements from the Public Utility Commission of Texas and the Electric Reliability Council of Texas, and Cameron County Resolution No. 2026R04056.
Company and county officials said the development will move forward without county tax abatements or incentives and without public costs for utility or power infrastructure. Fluidstack said the project is expected to create more than 2,500 construction jobs and several hundred permanent high-tech roles in the Rio Grande Valley.
"We pay our own way: our energy, our infrastructure, our water, and full local property taxes, and we build to the Governor's standards from day one", said Kate Franko, Head of Public Affairs at Fluidstack. "The Rio Grande Valley knows how to build big things, and we're hiring here first for construction, electrical, skilled trades, and permanent operations careers. We welcome oversight from elected officials, and if a neighbor ever has a concern, we'll address it quickly."
Cameron County Judge Eddie Treviño, Jr. said Thursday that the county issued a formal worksite permit allowing preliminary development to begin. The permit covers site clearing, land grading, utility installation, construction of access roads and parking lots, and retention pond stormwater management ahead of vertical building construction.
"Cameron County’s role in development is to review permit applications and ensure compliance with applicable laws and regulations", Judge Treviño stated. "Cameron County is obligated by state law to issue a permit once a business meets all requirements; however, the issuance of a permit does not alter the County’s responsibility to monitor compliance with established standards and conditions throughout the development process."
Treviño also said the county will continue monitoring the project as residents weigh in on large-scale data center development.
"The County recognizes that residents have expressed a range of opinions regarding data center development in Cameron County. County officials will continue to work with state agencies, utility partners, and the developer to ensure that all applicable requirements are met, and local concerns are addressed."
County officials said Fluidstack will pay full annual local property tax rates into county and school district funds.
Officials highlighted a set of stated protections tied to water use, sound and power infrastructure.
Cameron County Commissioner David A. Garza, whose precinct includes the site, said, "Fluidstack is doing it right, and that’s why Cameron County is proud to welcome them. They are investing in and paying for their own energy and infrastructure, ensuring those costs do not fall on our residents. They will also pay their full share of local taxes, while maintaining extremely low water usage - an especially important consideration for our region. Just as importantly, Fluidstack is working with local leaders to help address longstanding regional challenges."
State Senator Adam Hinojosa said, "Data centers looking to come into Texas should strengthen the communities they enter, not drain the resources those communities depend on. That is why I have been pushing for strong policy that establishes a 'Gold Standard' for responsible development that will protect our water, power, and other critical resources. Ultimately, the decisions to allow data centers should belong to the individual communities themselves."
"That being said, it is good to see companies like Fluidstack voluntarily holding themselves to that higher standard before it is even required by law", Hinojosa added. "Their commitment to securing their own power and water resources, working closely with local leaders, and investing in good-paying jobs is the kind of responsible growth we can get behind in the Rio Grande Valley."
Fluidstack and county officials described several commitments for the campus. The company said the site will use an industrial closed-loop cooling system with a total tank capacity smaller than an Olympic-sized swimming pool. The water is to be filled once and recycled indefinitely, with supply coming from the East Rio Hondo Water Supply Corporation, which the article describes as a non-governmental utility.
Operations are also capped at a 60-decibel limit at the property line, with earthen berms and dense tree lines intended to absorb sound. On power, the company said it will directly fund all energy and transmission infrastructure costs, with the facility remaining subject to audit protocols from the Public Utility Commission of Texas and ERCOT.
Fluidstack also said local hiring will prioritize Rio Grande Valley workers in construction, electrical and facility management trades that do not require four-year university degrees.
Founded in 2017 out of Oxford University and headquartered in New York City, Fluidstack builds, owns and manages single-tenant GPU clusters for AI research labs, major technology companies and government entities.
The company recently closed a $1.5 billion funding round led by Jane Street Capital at an $18 billion valuation, following an $830 million Series A round led by Situational Awareness. It also previously announced a $50 billion multi-year capacity agreement with Anthropic to build custom data center infrastructure across North America. According to the article, Fluidstack currently manages more than 100,000 top-tier GPUs, including NVIDIA H200 clusters.
The company said additional community benefit commitments developed with Cameron County leaders will be announced once formal agreements are finalized. More permits will be required before vertical building construction begins at the Harlingen-area site.
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