Real Estate

Investors Secure 50 Acres in Irving for Mega Data Center Hub

DFW to Expand Tech Infrastructure with 50 Acres for Data Centers in Irving, Boosting its Position as a Key Tech Hub

By Tal Alexander

5/15, 14:44 EDT
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Key Takeaway

  • Harrison Street and PowerHouse Data Centers acquire 50 acres in Irving, TX for three data centers totaling nearly one million square feet.
  • The DFW area's data center market ranks second in the U.S., with net leasing increasing seven-fold from 2020 to 2023.
  • Construction set to begin in early 2025, highlighting the region's growing status as a key hub for data infrastructure projects.

DFW's Data Center Boom

The Dallas-Fort Worth (DFW) area, already a burgeoning hub for technology and innovation, is set to welcome a significant expansion in its data center market. A strategic partnership between investor Harrison Street and developer PowerHouse Data Centers has led to the acquisition of 50 acres in Irving-Las Colinas, a suburb known for its business-friendly environment and strategic location. This new venture, dubbed PowerHouse Irving, is poised to introduce nearly one million square feet of shell data center space across three buildings, each boasting a power load of 67 mega-watts. Slated to begin construction in early 2025, with the first shell expected to be delivered within the same year, this project marks a significant milestone in the DFW area's tech infrastructure development.

Strategic Location and Market Dynamics

Irving-Las Colinas, located approximately 13 miles northwest of downtown Dallas, has been identified as a prime destination for vital data infrastructure projects. The city's mayor, Rick Stopfer, has highlighted Irving's appeal for such developments, underscoring the area's readiness to host large-scale tech infrastructures. This sentiment is echoed by the city's track record of attracting headquarters of major companies, including 7-Eleven and McKesson, further solidifying its status as a key player in the Metroplex's economic landscape. The DFW data center market has experienced a remarkable surge, with net leasing increasing seven-fold from 2020 to 2023, positioning it as the second-largest data center market in the United States, just behind Northern Virginia.

A Growing Trend in Alternative Real Estate Investments

The collaboration between Harrison Street and PowerHouse Data Centers reflects a broader trend in the real estate investment sector, where there's a growing interest in alternative assets like data centers. Harrison Street, known for its focus on alternative real estate assets, including student housing and storage real estate, brings a wealth of experience and a strategic approach to this venture. This project is part of a larger initiative by the joint venture, which includes plans for data centers in other key markets like Reno, Nevada, and Spotsylvania, Virginia. The expansion into DFW by PowerHouse Data Centers, a division of American Real Estate Partners, signifies the region's increasing importance as a national tech hub.

Implications for the DFW Tech Ecosystem

The development of PowerHouse Irving represents a significant investment in the DFW tech ecosystem, promising to enhance the region's capacity for data storage and processing. This project not only supports the growing demand for data center services driven by the digital economy but also positions Irving-Las Colinas as a critical node in the national data infrastructure network. The strategic location, combined with the scale of the development, underscores the DFW area's attractiveness to tech companies and investors alike, signaling a positive outlook for the region's economic growth and technological advancement.

Management Quotes

  • Rick Stopfer, Mayor of Irving:

    "Irving is a prime destination for vital data infrastructure projects."