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Two Dallas-Fort Worth Data Center Projects Get Underway

One, in Red Oak, is a 480-megawatt data center campus on 292 acres. Construction is underway. A second, roughly $1 billion data center project on 60 acres near the Bush Turnpike got city economic incentives last week.

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(TNS) -- Two large data center campus projects in Dallas-Fort Worth are moving forward.

One in Dallas County received incentives last week, and a Dallas-based firm announced Tuesday that its planned project in Red Oak will cover hundreds of acres.

DataBank, a Dallas-based tech firm, announced it will develop a 480-megawatt data center campus on 292 acres in Red Oak.

The Red Oak campus will hold up to eight, two-story data centers that could total 3.4 million square feet. Phase one of the project will include four buildings.

Construction at the site is underway, and the data centers could be ready by the second quarter of 2026, the company said in a news release.

The firm said it was expanding its capacity to “meet growing demand for data center space and power being driven by AI applications.”

“We are excited to announce this significant investment in the Dallas area, which we consider one of the most attractive, long-term, and permanent data center markets in the United States,” Raul K. Martynek, DataBank’s CEO, said in a statement.

The Dallas Morning News reported on the initial details of this project in June.

State filings, city documents and economic development officials offered details of the second project in Garland.

A roughly $1 billion data center project on 60 acres near the Bush Turnpike received economic incentives from the Garland City Council last week.

Councilors approved two agreements with entities affiliated with Digital Realty, an Austin-based firm that is one of the world’s largest data center providers.

The first agreement covers a more than 15-acre site on Ferris Road, where the first phase of the Digital Realty Garland Data Center will be located.

City documents show Digital Realty plans to build a 172,000-square-foot center to be occupied by Wells Fargo. The developer will invest $117 million, and Wells Fargo will bring approximately $328 million in additional capital investment.

The city will rebate up to $500,000 in development fees, a two-year rebate of 40% on business personal property taxes and a four-year rebate of 40% on real estate taxes. The developer must receive a certificate of occupancy before Dec. 31, 2025, for the deal to be valid.

The second agreement covers a 45-acre site at 1702 W. Campbell Road where four data centers may be built depending on tenant configurations and needs in additional phases.

The site is slated to hold over 1 million square feet of data center space, and the company plans to invest more than $160 million per building. The total capital investment from Digital Realty and potential tenants is expected to be more than $600 million, according to city documents.

The agreement provides a 50% rebate of sales tax for 20 years as well as a four-year, 40% rebate on the developer’s business personal property and real estate taxes per eligible building.

Digital Realty did not respond to questions about the Garland campus, but pointed to a March press release where the company announced a joint venture with Mitsubishi Corp. to support the development of two data centers in the Dallas metro area.

In its news release, Mitsubishi said it acquired a majority interest in two fully-leased data centers. Attempts to contact Mitsubishi before publication were unsuccessful.

Work is underway on the site’s first phase, according to Garland’s Economic Development department.

In March, The News reported that D-FW was the second largest data center market in the country, trailing only northern Virginia, according to data from Commercial real estate services firm JLL.

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