Investment firm Harrison Street and PowerHouse Data Centers have completed a 50-acre land purchase in the Irving-Las Colinas area of Dallas Fort Worth for a new data center.
The site, located at 111 Customer Way, will be home to PowerHouse Irving, a data center campus that will deliver 200MW when completed.
The campus will include three 67MW powered shell data centers totaling more than 946,000 sq ft (87,800 sqm). Construction is scheduled to begin in early 2025, with the first powered shell set to be delivered later that year.
The site has immediate access to permanent power from an existing adjacent substation, serviced by energy firm Oncor.
"Irving-Las Colinas has developed into a hugely important connectivity hub with major financial influence, and is an integral part of the Dallas market which has the fourth-largest concentration of Fortune 500 companies in the nation and the 20th largest economy in the world," said PowerHouse CEO and founder Doug Fleit.
"We are excited to deliver the first of several planned projects to serve one of the most dynamic data center markets in the world - and provide first-rate connectivity solutions for hyperscale customers."
PowerHouse was founded by American Real Estate Partners (AREP) and Harrison Street in 2022 – it is owned by AREP.
The company currently has a data center campus in Ashburn, Virginia, which was leased to CyrusOne in May 2023, and is planning developments on two other sites in the state in Loudoun County, in Sterling and Arcola.
The company also has a project in development in Virginia’s Spotsylvania County; it recently gained approval for a data center in Charlotte, North Carolina; and has plans for a new campus in Reno, Nevada. Powerhouse is also partnering with Chirisa Technology Parks to expand several of the latter firm’s sites.
According to the latest announcement, Powerhouse has 30 buildings currently in planning or underway, totaling more than 10.49 million sq ft (974,000 sqm) of data center space and more than 2.3GW of capacity.
"Dallas is an established data center market that is seeing significant growth and serves as a major hyperscale compute cluster for the central region," said Michael Hochanadel, managing director and head of digital at Harrison Street. "We are leveraging our valued partnership with PowerHouse to deliver much-needed capacity to this high growth area, meeting escalating demand-driven cloud, AI, and other use cases."
Online listings suggest 111 Customer Way is currently home to a former distribution warehouse previously operated by clothing firm Neiman Marcus. Sat on 50 acres, real estate firm Provident acquired the 491,310 sq ft (45,600 sqm) facility from the retailer in 2021. At the time the company said it planned to expand the facility to 750,000 sq ft (69,600 sqm) and re-tenant the building upon Neiman’s lease expiration in 2022.
"On behalf of our member-investors and board of directors, we are excited to welcome PowerHouse home to our community," said Beth A. Bowman, president & CEO of the Irving-Las Colinas Chamber of Commerce and Irving Economic Development Partnership. "CBRE recently confirmed Dallas-Fort Worth as the second largest market for data centers in the U.S. This is no surprise, as Irving continues to attract world-class data infrastructure projects, the backbone of the digital economy. Our unmatched local and global connectivity, central geographic location, quality of life, and pro-business mindset offer data center companies the opportunity to grow their presence right here in Irving-Las Colinas"
Las Colinas is a mixed-use planned community development in Irving, Dallas County. It is governed by The Las Colinas Association, a Texas non-profit corporation.
"I want to welcome PowerHouse and its partners to Irving. As we continue to demonstrate, our city is a prime destination for vital data infrastructure projects," said Irving Mayor Rick Stopfer. "Our skilled workforce, transportation links, central location, and ease of doing business attract companies ready to build the base for future high technology applications."
