As artificial intelligence (AI) and digital demand surge nationwide, Texas has become a major destination for data center development. Echoing the state’s efforts, Bosque County is soon to be home to a $1.2 billion state-of-the-art data center campus positioned directly next to a major energy facility.
The 190,000-square-foot campus is made possible through a partnership between Houston-based power company Calpine Corporation and Dallas-based CyrusOne, a global data center developer and operator.
The agreement will secure power, grid connection and land for the campus, named DFW10. The data center is currently under construction, with operations expected to begin by the end of 2026.
The project reflects broader growth across the Dallas-Fort Worth region, which has emerged as the nation’s second-largest data center market after Northern Virginia. A Cushman & Wakefield report found the area experienced substantial growth in 2023, adding significant capacity driven by artificial intelligence applications. Industry analysts expect the Dallas-Fort Worth market to experience further expansion through 2026.
Texas attracts investment due to favorable business conditions, competitive energy costs and central location. According to Intelligent CIO, the state added about 350 MW of new data center capacity in 2024, with most coming from colocation facilities. In addition, Texas generates substantial renewable energy from wind and solar sources.
This growth is straining the power grid. The region’s grid operator, ERCOT, projects substantial electricity demand growth, with data centers representing a major driver of increased power consumption through 2031. Large computing facilities are expected to significantly increase their energy usage in 2025 compared to 2024 levels.
The economic impact is substantial. Texas employment in the data center sector has expanded significantly, with tens of thousands of jobs supported by the industry. The Texas Economic Development Corporation estimates a 38% increase in data center employment from 2018 to 2024 in the state. Data processing needs have grown dramatically, with global digital information reaching unprecedented levels in 2024.
Company officials say environmentally friendly practices will be a priority. The campus will support initiatives including water conservation, biodiversity protection and the ability to respond in the case of an ERCOT grid emergency.
The campus will be located adjacent to the Thad Hill Energy Center, a natural gas power plant, providing direct access to reliable power infrastructure essential for data center operations. Texas officials are touting the project as a major win for the region, celebrating it as a boon to economic development as AI companies continue to focus their efforts in the Dallas-Fort Worth area.
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