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Dallas

KKR, GIP’s CyrusOne plans $32 million data center north of Dallas

Data boom fuels busy pipeline for data centers across Texas

CyrusOne Plans $32M Data Center in Allen
CyrusOne CEO Eric Schwartz and Chelsea Boulevard in Allen (CyrusOne, Google Maps)

CyrusOne is expanding its data center footprint in Allen. 

The data center firm is planning a 126,000-square-foot facility on its assemblage at the corner of Chelsea Boulevard and Ridgeview Drive north of Dallas, according to a filing with the Texas Department of Licensing and Regulation. The project will cost an estimated $31.5 million, according to the filing. 

Last year, private equity giant KKR and Global Infrastructure Partners bought CyrusOne for $15 billion. Other major players in real estate including Blackstone have placed bets on their own data center developers as the AI boom fuels unprecedented demand for space. 

Construction is expected to start in January and finish in September 2024, according to the filing. 

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Chelsea Boulevard is a small suburban road lining tightly-packed single-family homes. CyrusOne owns about 90 acres where the road meets Ridgeview Drive, according to Collin County property records. 

The new facility will be part of CyrusOne’s existing data center campus in the area, which it announced in 2017. At the time, the firm said it would spend around $600 million on the project. The center will be CyrusOne’s fourth in Dallas-Fort Worth. It will sit next to its 976,000-square-foot, 50 megawatt facility at 2300 Chelsea Boulevard. Tierpoint also has a data center nearby. 

Dallas-Fort Worth has long been a hub of data center development, and as sites and energy needs grow, developers are pushing further out from city centers. Google recently said it would invest $600 million to build a data center in Red Oak.

Just 1.7 percent of data center space is vacant in Austin and San Antonio, according to a recent report from CBRE. While that is slightly up from one year ago, it’s the second-lowest vacancy rate in the country for data center markets.

 

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