Dallas-based CyrusOne, a global data center developer and operator, and Houston-based Calpine Corporation ― the country’s largest generator of electricity from natural gas and geothermal resources ― announced on Wednesday a new 190-megawatt agreement to serve a new data center adjacent to the Thad Hill Energy Center.
The deal comes as Texas emerges as a hotbed of data center construction linked to the buildout of artificial intelligence. The agreement is expected to secure power, grid connection and land to support the new facility, which is under construction and expected to be operational by the end of 2026.
“We’re excited to be a partner in this project to deliver cutting-edge data center infrastructure to Texas, bringing jobs, innovation, and economic growth to the region,” Rick Peña, Calpine’s executive vice president of corporate development, said in statement.
The campus, named DFW10, is being constructed by CyrusOne, which is backed by top investment firms Global Infrastructure Partners, a part of BlackRock and KKR.
The new multiphase data center campus will span more than 190,000 square feet in the first phase, according to the release, with scalable capacity to meet future demand.
The campus will feature climate-neutral initiatives, water conservation, biodiversity protection and capabilities to respond during ERCOT grid emergencies, the companies added.
“We’re proud to be part of this landmark project, which combines dedicated power and data center expertise to deliver a unique, mission-critical solution to our customers,” said John Hatem, CyrusOne’s chief operating officer.
He added that as AI drives data demand, the campus shows the company’s commitment to delivering scalable, reliable infrastructure while supporting grid reliability.
GOP State Rep. Angelia Orr called the partnership a win for Bosque County and Texas.
“By bringing together world-class energy infrastructure and cutting-edge data center development, Calpine and CyrusOne are helping to power the future while investing in rural communities like ours,” Orr said in a statement.
“I’m proud to support innovative projects like this that bring jobs, strengthen our grid, and keep Texas at the forefront of economic growth and technology.”
Calpine’s roughly 9,000 MWs of generation and wholesale and retail platform in Electric Reliability Council of Texas will be capable of delivering up to 400 MWs to data centers in Bosque.
A recent CBRE report found hyperscalers, developers and AI companies are continuing to pour money into the Dallas-Fort Worth area, breaking ground on new projects.
The report said space currently under construction will double the size of the region’s data center market by the end of next year.
This reporting is part of the Future of North Texas, a community-funded journalism initiative supported by the Commit Partnership, Communities Foundation of Texas, The Dallas Foundation, the Dallas Mavericks, the Dallas Regional Chamber, Deedie Rose, the McCune-Losinger Family Fund, The Meadows Foundation, the Perot Foundation, the United Way of Metropolitan Dallas and the University of Texas at Dallas. The News retains full editorial control of this coverage.
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