Data Centers in Southern Dallas County
Kansas-based QTS Realty Trust plans to start work on two data centers in southern Dallas County later this year.
Filings with the Texas Department of Licensing and Regulation last week show the firm plans to spend an estimated $650 million on construction costs for the two projects. The data centers will be located at 303 Mason Road, near the borders of Wilmer and Lancaster.
Project Details
A 470,000-square-foot, two-story data center named QTS DFW2 DC2 will also include an administrative space. Site and campus pre-positioning work is expected to begin next month, and be completed by June 2026.
A separate 560,000-square-foot, two-story facility named QTS DFW2 DC3 will have similar qualities. Site and campus pre-positioning work is expected to begin in November and be completed by early 2027.
D-FW Real Estate News
The filings did not disclose wattage.
Details in TDLR filings are preliminary and subject to change. QTS representatives confirmed the projects but provided no details on the timeline or expected costs.
QTS Spokesperson Statement
“We are in the initial stages of planning,” said QTS spokesperson Karen Cohen. “We look forward to expanding our footprint to meet growing demand from our customers in the market. We will share updates as the projects progress.”
QTS’ Growing Holdings in Dallas-Fort Worth
The projects add to QTS’ growing holdings in Dallas-Fort Worth.
It would be the third data center built on the Mason Road property. QTS filed plans with the state for a 414,000-square-foot, two-story building with office and shell data hall space. Estimated construction costs were $288 million.
Irving City Council in December approved incentive packages for Microsoft and QTS Realty to build seven data centers. QTS plans to build three centers, adding to its existing 55-acre Irving campus.
QTS announced in January 2024 that it planned to build a $220 million project near the AllianceTexas development. The firm has a 52-acre campus in Fort Worth.
About QTS Realty Trust
QTS Realty Trust was acquired by Blackstone in 2021.
Dallas-Fort Worth Data Center Market
Dallas-Fort Worth is one of the country’s largest data center markets, with 1.4 gigawatts in operational capacity. An additional 500 megawatts is under construction, according to a year-end report from Cushman and Wakefield.
A gigawatt equals one billion watts or one thousand megawatts, and a typical LED light bulb uses about 10 watts.
The Interstate 35 corridor south of Dallas remains a popular data center market.
“The composition of the market is changing as well, further positioning Dallas as a major data center market, as wholesale providers represent a significant portion of the pipeline,” according to the report.
Conclusion
In conclusion, QTS Realty Trust’s plans to build two data centers in southern Dallas County will contribute to the growing demand for data center space in the region. The projects will not only provide new opportunities for businesses but also create jobs and stimulate economic growth.
Frequently Asked Questions
Q: What is the estimated cost of the two data center projects?
A: The estimated cost of the two data center projects is $650 million.
Q: Where will the data centers be located?
A: The data centers will be located at 303 Mason Road, near the borders of Wilmer and Lancaster.
Q: What is the expected completion date for the projects?
A: The expected completion date for QTS DFW2 DC2 is June 2026, and for QTS DFW2 DC3 is early 2027.
Q: How many data centers does QTS plan to build in the region?
A: QTS plans to build three data centers in the region, adding to its existing 55-acre Irving campus.
Q: What is the current state of the data center market in Dallas-Fort Worth?
A: Dallas-Fort Worth is one of the country’s largest data center markets, with 1.4 gigawatts in operational capacity and an additional 500 megawatts under construction.
