BROWNSVILLE, Texas — The City of Brownsville is preparing to take a deliberate stance on artificial intelligence and high-tech infrastructure after an unnamed developer withdrew a high-profile application to convert a former Walmart and Southwest Key building near the Port of Brownsville into an industrial data center.
The proposed project—which requested a major zone change to allow industrial operations at the retail property—prompted city officials to pull a planned public hearing off the calendar following the application's sudden withdrawal. However, local leaders view the event as a key catalyst to establish comprehensive municipal rules before any future facilities take root in the border metropolis.
In an interview, with the RGG Business Journal, Brownsville Mayor John Cowen, Jr. revealed that the city council intends to entertain a moratorium at its next meeting to temporarily pause all data center developments while city planners craft tailored guidelines and regulatory frameworks.
“This is the first time that a data center project has applied for some sort of permit or rezone in the City of Brownsville. So this is something that I think everyone's concerned about: making sure that any large data center project is vetted to protect the interests of our community in terms of power and water usage, and also land use,” Cowen said.
The site targeted by the developer sits in a prime location near the Port of Brownsville. Mayor Cowen noted that deed restrictions on the former Walmart property currently constrain its permitted uses, making an industrial rezone a significant administrative hurdle.
While interest in data center development continues to explode across Texas, Cowen stressed that municipal officials and the Brownsville Public Utilities Board (PUB) had not yet completed full due diligence on whether the proposed site possessed adequate electrical capacity or water supply to sustain heavy digital operations.
“I’m not aware of any diligence that has been done on the city side or on the PUB side to determine whether that project would be viable or not,” Cowen explained, adding that the developer's intent was primarily focused on securing the rezone approval.
To prevent unregulated growth, the city is eyeing a 60-day pause—extensible if necessary—during which municipal staff and elected leaders will host public meetings to outline both the challenges and opportunities associated with data processing facilities.
According to Cowen, the municipal policy spectrum remains wide open, ranging from targeted restrictions to outright bans, depending on public input and council deliberative processes.
“There's a full range, right? We can outright ban them, but we can also say, ‘Hey, if you want to build a data center, this is what the data center needs to do.’ They need to bring their own power. They need to have a closed-loop water system. They need to be in an area that doesn't impact residential or commercial areas,” Cowen said.
Data centers are rapidly becoming a defining topic across Texas local government meetings. While the State of Texas continues to develop statewide guidelines for data facilities, state leadership is expected to defer to local municipalities regarding whether such developments align with community priorities.
Mayor Cowen acknowledged the substantial economic incentives associated with hosting AI and high-tech data facilities, particularly in expanding the local commercial tax base.
“There is a benefit in terms of creating a very large tax base that will either reduce or keep taxes low,” Cowen said. “So there is probably a path forward to a win-win, but I think that it's on a case-by-case basis.”
As artificial intelligence shifts from emerging tech to critical infrastructure, Cowen remains focused on ensuring Brownsville positions itself strategically without sacrificing essential community resources.
“AI is definitely here to stay, and we need to determine whether we want to be part of that infrastructure boom when it comes to AI, and how communities can benefit from it and not put ourselves at risk. I think that's really the framework that we're working towards,” Cowen concluded.
The RGG Business Journal interviewed Cowen at the conclusion of a South Texas Alliance of Cities event in Brownsville. Asked if the subject of data centers had come up during STAC's private meeting, Cowen said: "Yes. It is a hot topic across the state right now."
Brownsville City Commissioner Pedro Cardenas made clear his position on data centers in a posting on social media.
“At this time, we are against the proposed data center,” Cardenas wrote. “Brownsville and South Texas have faced drought and water supply concerns for several years. Data centers can require significant amounts of water and electricity, and I do not believe our community currently has the infrastructure necessary to support a project of this size without placing additional pressure on our residents, utilities, and essential services. I appreciate the many phone calls, text messages, and emails I have received from constituents who feel the same way. I have listened, and I agree. I support responsible economic development, but not every project is right for Brownsville, and timing matters. In my eyes, this is simply not the right time for a data center in our community. Until we have the water supply, electrical capacity, infrastructure, and clear answers needed to protect our residents, my position is a firm NO.”
