DFW’s super-charged data center market is welcoming a new player.
Investor Harrison Street paired up with developer PowerHouse Data Centers to purchase 50 acres of land in the DFW suburb of Irving-Las Colinas.
PowerHouse Irving will feature three shell data centers totalling nearly one million square feet. Each building will have a total power load of 67 mega-watts. Construction will begin in early 2025, and the first shell set is expected to be delivered that same year.
The site is located at 111 Customer Way, about 13 miles northwest of downtown Dallas, and adjacent to a distribution center for Neiman Marcus.
Irving Mayor Rick Stopfer called the city “a prime destination for vital data infrastructure projects” in a news release about the land deal.
Irving is the twelfth-largest city in Texas and the fifth-largest city in the Metroplex behind Dallas, Fort Worth, Arlington and Plano. Irving is also a hotspot for headquarters, home to companies like 7-Eleven, Nexstar Media Group, McKesson and Vistra Energy.
North Texas’ data center market has surged in recent years, with developers rushing to meet demand for the asset class. Cushman & Wakefield data shows that net leasing of data centers in Dallas-Fort Worth increased seven-fold between 2020 and 2023, the Dallas Morning News reported. Northern Virginia is the country’s top data center market; DFW ranks second.
Dallas-based Prime Data Centers has plans for a $3 billion data center project in southwest Fort Worth, the Dallas Morning News reported.
PowerHouse Data Centers is a division of American Real Estate Partners. PowerHouse started in Northern Virginia and expanded to markets across the country.
Harrison Street is an investor that focuses on “alternative real estate assets” like student housing, built-to-rent and storage real estate. The firm was founded in 2005 and is headquartered in Chicago and London.
This year, the joint venture has also announced plans for data centers in Reno, Nevada and Spotsylvania, Virginia.
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