Compass Datacenters Adds $200M Development to Dallas Suburb

Data center developers continue to target the area south of Dallas.

Compass Datacenters will add two facilities totaling 500,000 square feet to Red Oak in Ellis County, upping the total number of buildings at the site to four, the Dallas Morning News reported.

The two buildings, near Interstate 35 on Austin Boulevard, are set to cost $200 million, according to filings with the Texas Department of Licensing and Regulation. The project is slated for delivery in 2025.

Dallas-based Compass Datacenters has added 375 acres to its Red Oak spread in recent years. The company filed plans to develop a $100 million facility in 2021, and embarked on a second building a year later.

Compass also has operations in Allen, north of Dallas, where it’s teamed up with Schneider Electric to develop a plant that will make components for data centers. That facility is expected to open later this year, the outlet reported.

Several other data center developments are on the way in Red Oak and other parts of Ellis County. Google is building a $600 million data center in Red Oak, which will help power its digital services like Google Cloud, Workspace Search and Maps.

It will be Google’s second data center in Texas; its first will be in Midlothian, roughly 20 miles southwest of Red Oak.

Google’s Red Oak facility will have just 30 full-time employees, as data centers are mainly used to store computing hardware. The exact size and timeline of that project are unclear.

The data center scene is thriving across all of Dallas-Fort Worth. The region has more than 5.6 million square feet of data center space, and just 157,800 square feet of that is vacant. Millions of additional square feet are in DFW’s pipeline.

—Quinn Donoghue