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Calpine Announces Agreement To Serve New Texas Data Center Adjacent To Power Plant
Calpine Corporation today announced a new 190-megawatt (MW) agreement with Dallas-based CyrusOne, a global data center developer and operator, to serve a new data center adjacent to Calpine’s Thad Hill Energy Center in Bosque County, Texas.
“The deal secures power, grid connection, and land to support a new state of the art facility that is currently under construction and expected to be operational by the fourth quarter of 2026,” Calpine said
The campus, named DFW10, is being constructed by CyrusOne, which is backed by investment firms Global Infrastructure Partners (GIP), a part of BlackRock, and KKR.
The new multiphase data center campus will encompass more than 190,000 square feet in the first phase, with scalable capacity to meet future demand.
The new CyrusOne campus will feature capabilities to respond during ERCOT grid emergencies, Calpine said
The project represents a $1.2 billion infrastructure investment, Calpine said
Rick Peña, Executive Vice President of Corporate Development at Calpine, said, “This first-of-its-kind project establishes Calpine as a leader in reliable, scalable power solutions for hyperscale customers, leveraging our world-class fleet and Powered Land Capabilities (‘PLC’) along with a suite of products and services to support both customer needs and grid reliability across ERCOT and beyond.”
“We’re proud to be part of this landmark project, which combines dedicated power and data center expertise to deliver a unique, mission-critical solution to our customers,” said John Hatem, Chief Operating Officer at CyrusOne.
“CyrusOne is set to capitalize on Calpine’s newly developed PLC suite of products and services,” Calpine said
Calpine said, “Calpine’s ~9,000 MWs of generation and wholesale and retail platform in ERCOT will be capable of delivering up to 400 MWs to data centers located in Bosque, Texas. This PLC solution offers a powerful combination of scale, reliability, and generation capacity for large-load, mission-critical users such as data center operators, and this agreement further cements Calpine’s role as a strategic energy partner to hyperscale data centers while supporting reliability for all Texans and the ERCOT grid.”
This new 190 MW hyperscale data center campus marks the inaugural investment through Energy Capital Partners and KKR’s $50 billion strategic partnership to support AI infrastructure growth in the United States.
ECP and KKR said, “This project establishes a new model for delivering integrated, AI-ready infrastructure at scale by combining digital capacity and dedicated, around-the-clock power in one of the fastest-growing compute corridors in the nation. The Bosque campus serves as a blueprint for future deployments across the country, aimed at meeting the urgent needs of hyperscalers while supporting local utilities and grid stability as the power received from Calpine will be redirected to support system reliability and help meet local demand in times of grid scarcity.”
ECP and KKR said, “The campus will be located on land adjacent to Calpine Corp.’s (‘Calpine’) Thad Hill Energy Center and benefits from reliable natural gas generation. Calpine has secured a long-term contract to supply dedicated power to the data center campus.”
Construction of the project is underway, and the site is expected to be operational by the fourth quarter of 2026
