Developer withdraws Brownsville data center proposal ahead of moratorium discussion

A proposed data center inside a former Walmart near the Port of Brownsville has been withdrawn just days before Brownsville officials are set to debate whether to temporarily halt new data center projects across the city.

The City of Brownsville announced Wednesday that the applicant has withdrawn its request for a specific use permit for the proposed data center at 7480 Padre Island Highway, canceling a public hearing that had been scheduled before the Planning and Zoning Commission on Aug. 6.

As a result, the Planning and Zoning Commission will not present, discuss, consider or act on the request during its Aug. 6 meeting.

The withdrawal comes as Brownsville city leaders prepare to take a broader look at how data centers should be regulated.

Brownsville Mayor John Cowen announced Wednesday that the City Commission will hold a workshop on data centers during its Aug. 4 meeting. 

Commissioners will also consider imposing a 90-day moratorium on data center projects to give the city time to evaluate and update its zoning and development standards for high-intensity data centers and similar land uses.

Cowen said the temporary pause would allow the city to review how such projects could affect public infrastructure while ensuring orderly growth.

The now-withdrawn proposal would have converted a roughly 265,000-square-foot former Walmart on a 32-acre site near the Port of Brownsville and Brownsville South Padre Island International Airport into a data center.

The project first came to light earlier this month when the city published a public hearing notice seeking a specific use permit. At the time, the proposal represented what could have become the Rio Grande Valley’s second major data center, following a controversial proposal outside Harlingen that has drawn months of public scrutiny over water and electricity consumption.

The former Walmart building was constructed in 2004 and renovated in 2018. It most recently housed a Southwest Key Programs shelter for unaccompanied migrant children after operating for years as a retail store.

The property is owned by Randr Ventures LLC, according to Cameron County property records, and was appraised at approximately $10 million for tax purposes in 2026.

The city did not provide a reason for the applicant’s decision to withdraw the specific use permit request, and it was not immediately clear whether the proposal could be resubmitted at a later date.

The Brownsville City Commission is scheduled to discuss data centers during its workshop on Tuesday, Aug. 4, before the Planning and Zoning Commission meets on Thursday, Aug. 6, when the withdrawn item would have otherwise been considered.