Hillwood’s AllianceTexas Lands $760M AI Deal
A Nvidia partner is developing the facilities at the Fort Worth master-planned development.
Texas took another step forward this week as a leader in accelerating the growth of artificial intelligence and advanced manufacturing investments in the U.S. Wistron, one of the world’s largest electronics manufacturers and a partner to Nvidia, chose AllianceTexas in Fort Worth to build two AI supercomputing plants totaling 1.1 million square feet of space in a project estimated at $761 million.
The project, which could create more than 800 local jobs, will be located on nearly 63 acres within Hillwood’s AllianceTexas, a 27,000-acre master-planned, mixed-use development in North Fort Worth. Wistron is investing approximately $181 million, including land acquisition costs, to renovate a 766,944-square-foot building at 14601 Mobility Way. The project’s primary site will be a 324,598-square-foot facility at 15200 Heritage Parkway. Wistron is investing more than $580 million at that site including land acquisition costs and improvements. Both sites are expected to be operational by early 2026.
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The property at 15200 Heritage Parkway is part of Trammell Crow Co.’s 35 Eagle business park. The second site at 14601 Mobility Way is known as Hillwood’s Westport 14 development. It was one of several industrial buildings Hillwood constructed last year at AllianceTexas.
Building in the U.S.
Jackie Lai, senior vice president of global manufacturing for American and European operations for the Taiwan-based company, cited talent availability, robust logistics infrastructure and a vibrant industrial ecosystem as key reasons why Wistron chose Fort Worth for its first U.S. supercomputing facilities. Other cities competing for the developments were El Paso, Texas; Nashville, Tenn.; and Fremont, Calif.
As Wistron continues to expand its AI-related product capabilities and align with its strategic roadmap, establishing manufacturing operations in the U.S. is a critical step in meeting the needs of its customers and advancing the company’s global vision, Lai said in prepared remarks.
The news comes about two months after Taiwan-based Foxconn Corp., also a longtime Nvidia and Apple partner, acquired four buildings totaling 1 million square feet at the Fairbanks Logistics Park in northwest Houston from Dalfen Industrial for $142 million.
Foxconn reportedly plans to invest $450 million at the industrial park to build an AI server manufacturing facility. Nvidia had announced in April it was building a factory in Houston in collaboration with Foxconn that would manufacture components for AI supercomputers within 12 to 15 months.
At that time, Nvidia also stated it was planning a second facility in the Dallas area with Wistron but did not release details. Once these facilities are completed, it will be the first time Nvidia has built AI supercomputers entirely in the U.S. They are part of Nvidia’s estimated $500 billion plan to develop AI infrastructure over the next four years in the U.S.
Tax breaks and incentives
The Wistron investments were greeted with enthusiasm by city and Denton County officials, who stated the investment will create significant high-quality job growth and economic impact in Fort Worth and North Texas. Others noted it will position the region as a leader in the global AI, semiconductor and electronics manufacturing industries.
Both the city and county approved incentives to Wistron in recent weeks.
Under the agreement with Denton County, Wistron will receive a 40 percent abatement capped at $3 million for the site at 15200 Heritage Parkway and a 30 percent abatement capped at $900,000 for 14601 Mobility Way for eight years, according to county documents. If both sites are completed, the abatement rates increase to 50 percent and 40 percent respectively, with a combined cap of $5 million over the eight-year period.
In June, the Fort Worth City Council approved a total of $30 million in tax abatements. Wistron will receive a 10-year, 70 percent abatement of personal property and business personal property at 15200 Heritage Parkway and a 50 percent abatement at 14601 Mobility Way, according to the Dallas Business Journal. Those abatements could reach 80 percent and 60 percent, respectively, if all requirements are met.
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