Calpine and CyrusOne Announce Phase 2 of Powered Land Agreement to Support Hyperscale Data Center at Thad Hill Energy Center in Texas

Rhea-AI Summary

Calpine (NYSE:CEG) and CyrusOne expanded their Powered Land Agreement to a total of 400 MW at the Thad Hill Energy Center in Bosque County, Texas, adding 210 MW to the original 190 MW.

The supply secures power, grid connection, and land for a hyperscale CyrusOne data center currently under construction and expected to be operational by Q4 2026. Calpine highlighted coordinated operations to curtail generation during supply scarcity to support grid reliability. The companies said the deal supports fast deployment for large-load customers and positions Calpine as a provider of scalable power solutions for hyperscale data centers.

Positive

• 400 MW total power secured for CyrusOne data center
• Added 210 MW to the prior 190 MW agreement
• Targeted commercial operation by Q4 2026
• Planned operational coordination to enhance grid reliability
• Secures power, grid connection, and land for hyperscale build

Negative

• None.

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HOUSTON and DALLAS, Nov. 3, 2025 /PRNewswire/ -- Houston-based Calpine Corporation today announced the second phase of its 400-megawatt (MW) power supply agreement with Dallas-based CyrusOne, a leading global data center developer and operator, to serve a new data center adjacent to the Thad Hill Energy Center in Bosque County, Texas. The new contract adds 210MW of power to the 190MW originally announced in July, completing a deal that will secure power, grid connection, and land to support the CyrusOne facility, which is currently under construction and expected to be operational by the fourth quarter of 2026.

"Our partnership with Calpine exemplifies the innovation required to meet the growth in data center demand," said Eric Schwartz, CEO of CyrusOne. "By expanding our agreement to 400MW with their Powered Land Capabilities, we've enabled a comprehensive solution for power, grid connectivity and site infrastructure, while maintaining our commitment to responsible energy use. The Thad Hill facility will set a benchmark for future hyperscale developments across Texas and beyond."

"One of the agreement attributes that we are most proud of is the ability for Calpine and CyrusOne to coordinate our operations to ensure grid reliability in times of supply scarcity," said Andrew Novotny, Calpine President and CEO. "By continuing to actively manage our generation output, these partnerships actually enhance grid reliability by curtailing in times of need. These agreements also deliver significant financial benefits for the community and the state of Texas, all while helping the US lead in the critical AI race simultaneously."

Calpine's world-class fleet in Texas is uniquely equipped to support fast-paced development by large-load, mission-critical users, and today's agreement reinforces Calpine's position as the premier power solutions provider for industrial-scale customers.

"Our best-in-class Powered Land Capabilities ("PLC") reflect Calpine's unmatched expertise in serving large loads, such as data centers. This innovative suite of products and services will continue to ensure grid reliability while preserving Texas as the energy capital of the world and meeting the unique business needs of our data center partners," said Rick Peña, Executive Vice President of Corporate Development at Calpine. "This expanded agreement at the Thad Hill Energy Center secures Calpine's position as a leader in reliable, scalable power solutions for hyperscale customers, which Calpine expects to continue to demonstrate in future projects at other Calpine facilities."

Calpine's PLC suite of products and services is tailored to provide the needed speed-to-market and reliability that hyperscale customers demand while ensuring reliability and predictability for all Texans.

About Calpine:

Calpine Corporation is America's largest generator of electricity from natural gas and geothermal resources with operations in competitive power markets. Our fleet of 79 energy facilities in operation represents over 27,000 megawatts of generation capacity. Through wholesale power operations and our retail businesses, we serve customers in 22 states and Canada. Our clean, efficient, modern and flexible fleet uses advanced technologies to generate power in a low-carbon and environmentally responsible manner. We are uniquely positioned to benefit from the secular trends affecting our industry, including the abundant and affordable supply of clean natural gas, environmental regulation, aging power generation infrastructure and the increasing need for dispatchable power plants to successfully integrate intermittent renewables into the grid. Calpine Corporation is a private corporation owned by a consortium of investors, led by Energy Capital Partners (ECP). This group also includes Access Industries and the Canada Pension Plan Investment Board. On January 10, 2025, Calpine announced entry into an agreement with Constellation (Nasdaq: CEG) under which Constellation will acquire Calpine. If you would like to learn more about Calpine, follow us: Linkedin.com/company/Calpine.

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SOURCE Calpine Corporation

FAQ

What did Calpine and CyrusOne announce about the Thad Hill project on November 3, 2025?

They announced an expanded Powered Land Agreement increasing total contracted power to 400 MW for the Thad Hill data center.

How much additional power did CyrusOne secure from Calpine for the Thad Hill site?

CyrusOne added 210 MW to the existing 190 MW, bringing the total to 400 MW.

When is the CyrusOne data center at Thad Hill expected to be operational (CEG)?

The facility is under construction and expected to be operational by Q4 2026.

How will the Calpine–CyrusOne agreement affect grid reliability in Texas?

Calpine and CyrusOne plan to coordinate generation and may curtail output during supply scarcity to support grid reliability.

What components does the Powered Land Agreement provide for the Thad Hill data center (CEG)?

The agreement secures power delivery, grid connection, and land to support the hyperscale data center build.

What does the 400 MW contract mean for Calpine's position in the data center market?

Calpine said the deal reinforces its role as a provider of reliable, scalable power solutions for large-load hyperscale customers.