KKR JV, CyrusOne to Build $4B Data Center Campus
This is the first project of a $50 billion partnership.
Energy Capital Partners, in joint venture with KKR, will build a $4 billion hyperscale data center campus in Bosque County, Texas. The project is set to total 190 megawatts at full build-out.
This is the first investment of the $50 billion strategic partnership between the two companies, formed for data center investment, development and solutions for hyperscalers’ demand, aimed to deploy capital across several developments for the next four years.
A joint venture between Energy Capital Partners and CyrusOne will oversee the construction, while Calpine Corp. will provide power capacity. Construction is already underway and is expected to wrap up by the end of next year.
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The upcoming CyrusOne campus will rise on land adjacent to Thad Hill Energy Center, a power plant owned by Calpine Corp. The two companies also entered into an agreement to secure power capacity, grid connections and land for this development.
The multi-phase project, dubbed DFW10, will include an initial 144-megawatt power capacity. The first phase will include more than 190,000 square feet, with a final target exceeding 700,000 square feet. Plans call for sustainability features such as climate-neutral initiatives, biodiversity protection, water conservation and capabilities to maintain and prevent RECOT grid emergencies.
DFW’s active data center pipeline
CyrusOne operates more than 55 data centers in the U.S. According to its website, the company has eight campuses currently in operation in the state: one in Austin, three in the Dallas-Fort Worth metro, one in Houston and three in San Antonio. The first CyrusOne data center built in Dallas-Fort Worth dates back to 1999. Dubbed DFW1, it totals 670,000 square feet and is currently the largest data center building in the state.
Beyond CyrusOne, there are multiple investors and developers with recent projects in the metro. One of them is Spanish developer ACS, planning a $2 billion, five-building campus in Fort Worth. The project received tax incentives in April, with the first phase set to reach completion by 2031.
Also, in January, Lincoln Property Co. formed a partnership with Gigabit Fiber and Tradition Holdings for the development of a 540-megawatt campus in South Dallas. This $1 billion project will include four facilities totaling more than 800,000 square feet.
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