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Dallas firm plans $300 million expansion to Red Oak data center campus

The company estimates it will spend a half billion dollars on construction for recently announced work.

Dallas’ Compass Datacenters has plans for three more data centers at its campus in Ellis County.

The hyperscale and cloud-oriented data center company will add three facilities in Red Oak. The facilities, DFW III-III Buildings 5-7, will total more than 750,000 square feet. The data centers will be along Austin Boulevard.

The total estimated construction costs are $300 million, according to filings with the Texas Department of Licensing and Regulation earlier this month. Details in TDLR filings are preliminary and subject to change.

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Construction on building 5 began in 2022, according to the filing. Construction on buildings 6 and 7 began earlier this year. Work is expected to be completed on the final building in 2026. The filings did not disclose wattage. Compass Datacenters provided no further details to The Dallas Morning News regarding the project.

“They’re a great community to work with, very excited to have the development (and) excited to support that commercial tax base,” said Katy Hancock, the company’s vice president of public relations. “Generally, great people to work with who just wanted to bring that investment to their community.

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It’s the latest addition to their Red Oak campus. Earlier this year, Compass Datacenters filed plans for two buildings, DFW III-II Building 3 and DFW III-II Building 4, totaling 500,000 square feet.

Estimated construction costs for that project were $200 million, according to the state filings. The work will be completed in 2025.

The company added 375 acres to its Red Oak holdings in recent years. The sale was brokered by Davidson Bogel Real Estate. Compass originally acquired 165 acres of land in the city in 2019.

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Compass Datacenters partnered with Schneider Electric on a 105,000-square-foot facility that will manufacture components for data centers. The building opened in June. It’s part of a $3 billion multiyear data center technology agreement between the companies

The new facilities add to an already large data center market in Red Oak.

Google plans to invest more than $600 million adjacent to Compass’ holdings in Red Oak. Google also has a center in Midlothian.

DataBank, a Dallas-based tech firm, announced it will develop a 480-megawatt data center campus on 292 acres in Red Oak. Their Red Oak campus will hold up to eight two-story data centers that could total 3.4 million square feet.

Construction is underway, and the data centers could be ready by the second quarter of 2026, the company said in a news release earlier this month.

Data center space under construction in Dallas-Fort Worth hit record levels during the first half of 2024. It has the second largest data center inventory in the country behind Northern Virginia and ranks sixth in net leasing activity, according to CBRE’s latest North American Data Center Trend Report.

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