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Fluidstack breaks ground on $4 billion data center project in Cameron County

Fluidstack breaks ground on $4 billion data center project in Cameron County
6 hours 49 minutes 33 seconds ago Thursday, September 10 2026 Sep 10, 2026 September 10, 2026 2:35 PM September 10, 2026 in News - Local
Source: KRGV

Fluidstack has started construction on the first phase of a data center campus in Cameron County, the company announced in a Thursday news release.

The $4 billion project will sit on more than 1,100 acres east of Valley International Airport and west of the Port of Harlingen near Rio Hondo. It is expected to create more than 2,500 construction jobs and several hundred permanent jobs, the news release added.

The project complies with directives from Gov. Greg Abbott, ERCOT, the Public Utility Commission of Texas and the Cameron County Resolution on data centers. Fluidstack is also developing community benefit commitments with local leaders, with details to be announced as agreements are finalized, Fluidstack said.

The announcement comes a week after Harlingen city commissioners tabled a drainage agreement that would have allowed Fluidstack to route stormwater into a city-owned canal.

READ MORE: Harlingen tables FluidStack data center drainage request after public pushback

Fluidstack spokesperson Kate Franko said the company received a worksite permit from Cameron County and will be pursuing alternative plans for wastewater discharge.

The news release said the company will use closed-loop cooling supplied by East Rio Hondo Water Supply Corporation.

In a statement issued on social media, Harlingen Mayor Norma Sepulveda said the project was moving forward "with or without the city of Harlingen."

"It was not located in Harlingen. It was not asking Harlingen for permission to build. We did not have the authority to stop it," Sepulveda stated. "We are exactly where I said we could end up; Fluidstack is moving forward without Harlingen. I have now been informed, and it is being reported, that Cameron County has approved the necessary permit for Fluidstack to move forward and providing them with an alternative drainage option. I also understand that the $20 million that had been proposed for infrastructure improvements in Harlingen will instead go to Cameron County as part of that arrangement. I have received no communication from Cameron County about this."

The company says it will cover all energy, infrastructure and water costs, with nothing passed on to residents. The project also comes with no local property tax breaks and will add millions of dollars per year to the local tax base.

Fluidstack says the system uses less water than an Olympic-sized swimming pool, filled once and recycled indefinitely.

"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,” Franko said. "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 Commissioner David A. Garza, whose precinct includes the area where the campus will be built, welcomed the project in a statement.

"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. Just as importantly, Fluidstack is working with local leaders to help address longstanding regional challenges. We welcome their investment and look forward to the economic opportunities this project will bring to Cameron County."

Channel 5 News is reaching out to additional Cameron County leaders for comment on these developments.

When reached for comment, Congressman Vicente Gonzalez issued the following statement in full:

"While I fully support commercial growth and economic development, it cannot come at the expense of resources our region urgently needs. South Texas is facing a water shortage, and data centers are energy-intensive and large water consumption facilities that will place significant new demands on already strained communities. We must be able to reliably serve homes and businesses before looking to build or expand data centers. Until we have an abundance of water, a reliable energy grid, and a well-thought-out-plan for the future, I continue to oppose the development of these facilities.”

Fluidstack said additional details of the project are available online.

Watch the video above for the full story.

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