Blackstone’s QTS to Build $220M Data Center in North Fort Worth

The data center business continues to boom in Dallas-Fort Worth, with a massive development from heavy hitters in the sector.

Blackstone subsidiary QTS Data Centers is embarking on a $220 million project in North Fort Worth, near Hillwood’s AllianceTexas development, the Dallas Morning News reported.

The data center, which will be Kansas-based QTS’ second in the area, is set to rise two stories and span more than 471,000 square feet, according to a filing with the Texas Department of Licensing & Regulation. Construction is expected to start in March and be completed in early 2026.

The project aligns with the burgeoning data center landscape in North Fort Worth, where Facebook operates its massive data center campus. TierPoint acquired a 208,000-square-foot data center in AllianceTexas earlier this month.

QTS, which operates data centers in more than a dozen states, entered the North Texas market in 2014, when it purchased a 700,000-square-foot property in Irving’s Las Colinas area. QTS filed plans last year to perform a $180 million expansion of that 50-acre campus, the outlet said.

DFW has one of the largest data center markets in the nation, with 1.4 million square feet of space under construction at the end of 2023, according to Cushman & Wakefield. Just 2 percent of the region’s 4.8 million square feet of data centers was vacant as of November.

South of Dallas, Google has plans for a $600 million data center in Red Oak, roughly 20 miles southwest of its other data center in the area. Addison-based Compass Datacenters is building a $100 million, 250,000-square-foot facility in suburban Red Oak.

Elsewhere in DFW, CyrusOne is expanding its data center campus in Allen with a 126,000-square-foot facility at the corner of Chelsea Boulevard and Ridgeview Drive, set to cost an estimated $32 million.

—Quinn Donoghue