Construction has begun on the Beacon Point Data Center, a highly watched AI data center project in Nueces County, located between Robstown and Calallen at 4650 FM 1694. According to records from the Texas Department of Licensing and Regulation, construction for the 525-acre campus will cost almost USD 399 million, with an estimated completion date set for Nov. 5, 2027.

The project is being privately funded, and the construction spans 657,130 square feet. The owner is listed as Beacon Point DC LLC, also known as Lon Hill Infrastructure LLC. The tenant, or operator, of the data center has not been made public.

Hut 8 leads the development

Hut 8, a Florida-based company, is behind the development of the Beacon Point campus in Calallen.

In May, the Corpus Christi Regional Economic Development Corp. announced that Hut 8 had planned to develop a USD 9.8 billion multi-phase, multi-tenant AI data center.

As of July, an undisclosed company has signed two lease agreements for the campus for a total contract amount of USD 19.6 billion.

City briefing details scale of the investment

During an Oct. 12 briefing to the Corpus Christi City Council, CCREDC President Aaron Bowman said Hut 8 has paid USD 13 million in permitting fees for the project to the city and that data center equipment will cost an estimated USD 20 billion.

The one-gigawatt campus will include two data centers operated by two separate tenants, according to Bowman. Phase one of the campus could potentially be running by the end of 2027.

Water and electricity arrangements

Hut 8 has said it will use a closed-loop water system with water sourced from outside the county that would require a single fill. The water could be used for operations spanning four to seven years.

Electric delivery service to the data center is locked in with an interconnection agreement with AEP Texas.

Council members weigh in

During the City Council meeting, City Councilwoman Sylvia Campos expressed concern with water usage and asked how the CCREDC is managing scrutiny surrounding data centers. Bowman responded that Beacon Point has met its "community profile" standards and will have a 2-inch water pipeline that would maintain a standard flow of water.

City Councilman Gil Hernandez mentioned that industrial companies such as Valero, Citgo, Gulf Coast Growth Ventures, and Flint Hills are part of industrial district agreements, which create "mutual benefit" in terms of city resources and tax revenue. In the future, Hernandez said he would suggest any potential data center developments enter an agreement.

Regulatory backdrop

At a July 21 meeting, the Corpus Christi City Council directed staff to amend the development code regarding data center classification and zoning parameters.

Calls for data center regulation have been circulating statewide. Gov. Greg Abbott directed the Texas Commission on Environmental Quality on Sept. 21 to pause data center permits until the Electric Reliability Council of Texas completes its audit.

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