Crews have started work on the Beacon Point Data Center, a sprawling artificial intelligence facility rising on a 525-acre tract at 4650 FM 1694, between Robstown and Calallen in Nueces County.

Records filed with the Texas Department of Licensing and Regulation put the construction price at nearly USD 399 million, with the build-out covering 657,130 square feet and an estimated finish date of Nov. 5, 2027.

The project is being financed privately. Beacon Point DC LLC, which also operates as Lon Hill Infrastructure LLC, is listed as the owner. The identity of the tenant that will run the data center has not been disclosed.

Florida-based developer anchors a multibillion-dollar vision

Hut 8, a company headquartered in Florida, is the force behind the Beacon Point campus.

In May, the Corpus Christi Regional Economic Development Corp. announced Hut 8's plans for a USD 9.8 billion AI data center project structured in multiple phases and serving multiple tenants.

The scale of interest in the campus has grown since then.

By July, a company whose name has not been made public had executed two lease agreements covering the site, with a combined contract value of USD 19.6 billion.

City officials hear details of the investment footprint

At an Oct. 12 briefing to the Corpus Christi City Council, CCREDC President Aaron Bowman laid out the financial dimensions of the development.

Hut 8 has already paid USD 13 million in permitting fees to the city, he said, and the equipment destined for the data center is estimated at roughly USD 20 billion.

Bowman described a one-gigawatt campus composed of two separate data centers, each to be operated by a different tenant.

Phase one could begin running as soon as the end of 2027, according to his presentation.

Utilities are lined up for the campus

Water and power arrangements for the project have been settled in advance of the build.

Hut 8 has committed to a closed-loop water system, with supply drawn from sources outside Nueces County and requiring only a single fill.

Under that arrangement, the water could support operations for a period of four to seven years. On the electrical side, service to the data center is secured through an interconnection agreement with AEP Texas.

Council members raise water and resource questions

The project drew questions from members of the City Council during the October meeting.

Councilwoman Sylvia Campos voiced concerns about water consumption and pressed the CCREDC on how it is handling the scrutiny that data centers have attracted.

Bowman responded that Beacon Point has met the organization's "community profile" standards and pointed to a 2-inch water pipeline designed to maintain a standard flow of water.

Councilman Gil Hernandez took a different angle, noting that industrial companies, including Valero, Citgo, Gulf Coast Growth Ventures, and Flint Hills, operate under industrial district agreements with the city.

Those arrangements, he said, create "mutual benefit" in how city resources and tax revenue are handled. Looking ahead, Hernandez said he would recommend that any future data center developments pursue a similar agreement.

Regulatory framework is shifting in the background

The construction start comes amid evolving rules for data centers at both the city and state levels.

At a July 21 meeting, the Corpus Christi City Council directed its staff to revise the development code, focusing on how data centers are classified and what zoning parameters should apply to them.

Statewide, calls for tighter oversight have been building.

On Sept. 21, Gov.

Greg Abbott instructed the Texas Commission on Environmental Quality to pause the issuance of data center permits until the Electric Reliability Council of Texas completes an audit it is conducting.

What lies ahead for Beacon Point

With construction now underway, the project's trajectory is set by the dates and figures on record: a nearly USD 399 million build on 525 acres in Nueces County, an estimated completion of Nov. 5, 2027, and the possibility of phase one operations by the end of that year.

Behind those numbers sits the larger Hut 8 commitment announced in May, a USD 9.8 billion, multi-phase, multi-tenant AI data center, and the two lease agreements totaling USD 19.6 billion signed by an as-yet-unnamed company.

The development remains in private hands, with no public tenant identified, and its water and power arrangements already in place through the closed-loop system and the AEP Texas interconnection agreement.

How the city's pending code amendments and the state's permit pause shape the broader landscape for data centers remains a live question as the Beacon Point campus moves from plans to construction.