Calpine and CyrusOne Announce Thad Hill Energy Center Powered Land to Support Hyperscale Data Center Development in Texas

Rhea-AI Summary

Calpine Corporation has announced a significant 190-megawatt (MW) agreement with CyrusOne to power a new hyperscale data center in Bosque County, Texas. The project, named DFW10, represents a $1.2 billion infrastructure investment and will be located adjacent to the Thad Hill Energy Center.

The first phase of the data center will span 190,000 square feet and is expected to be operational by Q4 2026. The facility will feature climate-neutral initiatives, water conservation, and biodiversity protection measures. Calpine's total generation capacity of ~9,000 MWs in ERCOT will be able to deliver up to 400 MWs to data centers in Bosque, Texas through its Powered Land Capabilities (PLC) solution.

Positive

• Significant $1.2 billion infrastructure investment in Texas
• 190 MW power agreement securing reliable energy supply
• Scalable capacity for future expansion beyond initial 190,000 square feet
• Project brings jobs and economic growth to rural Bosque County
• Strategic positioning in growing AI and data center market

Negative

• Extended timeline with operations not starting until Q4 2026
• Significant power commitment (190 MW) in potentially constrained ERCOT grid

News Market Reaction

+0.74%

1 alert

+0.74% News Effect

On the day this news was published, CEG gained 0.74%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

HOUSTON and DALLAS, July 30, 2025 /PRNewswire/ -- Houston-based Calpine Corporation today announced a new 190-megawatt (MW) 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 deal secures power, grid connection, and land to support a new state of the art facility that is currently under construction and expected to be operational by the fourth quarter of 2026. 

 "We're excited to be a partner in this project to deliver cutting-edge data center infrastructure to Texas, bringing jobs, innovation, and economic growth to the region," said Rick Peña, Executive Vice President of Corporate Development at Calpine. "This first-of-its-kind project establishes Calpine as a leader in reliable, scalable power solutions for hyperscale customers, leveraging our world-class fleet and Powered Land Capabilities ("PLC") along with a suite of products and services to support both customer needs and grid reliability across ERCOT and beyond."

The campus, named DFW10, is being constructed by CyrusOne, which is backed by leading investment firms Global Infrastructure Partners (GIP), a part of BlackRock, and KKR. The new multiphase data center campus will encompass more than 190,000 square feet in the first phase, with scalable capacity to meet future demand. With a focus on sustainability and reliability, the new CyrusOne campus will feature climate-neutral initiatives, water conservation, biodiversity protection, and capabilities to respond during ERCOT grid emergencies. The project represents a $1.2 billion infrastructure investment.

CyrusOne is set to capitalize on Calpine's newly developed PLC suite of products and services.

 "We're proud to be part of this landmark project, which combines dedicated power and data center expertise to deliver a unique, mission-critical solution to our customers," said John Hatem, Chief Operating Officer at CyrusOne. "As AI drives unprecedented data demand, this campus demonstrates our commitment to delivering scalable, reliable infrastructure for our Intelliscale® customers while supporting grid reliability for consumers and businesses in Texas and beyond."

 "For decades, Calpine has been the premier power solutions provider for industrial-scale customers who need unwavering reliability, scalable capacity, and proven operational expertise," said Mr. Peña. "Our world-class fleet is designed to support fast-paced development and PLC, along with the substantial data center load currently served by our affiliate, Calpine Solutions, puts those capabilities to work for hyperscale customers on the cutting edge."

To commemorate the agreement, Calpine and CyrusOne will hold a ceremony this autumn at the site.

"This partnership is a win for Bosque County and for Texas. By bringing together world-class energy infrastructure and cutting-edge data center development, Calpine and CyrusOne are helping to power the future while investing in rural communities like ours," said State Representative Angelia Orr. "I'm proud to support innovative projects like this that bring jobs, strengthen our grid, and keep Texas at the forefront of economic growth and technology."

Calpine's ~9,000 MWs of generation and wholesale and retail platform in ERCOT will be capable of delivering up to 400 MWs to data centers located in Bosque, Texas. This PLC solution offers a powerful combination of scale, reliability, and generation capacity  for large-load, mission-critical users such as data center operators, and this agreement further cements Calpine's role as a strategic energy partner to hyperscale data centers while supporting reliability for all Texans and the ERCOT grid. 

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/Calpine.

About CyrusOne
CyrusOne is a leading global data center owner, developer and operator, delivering sophisticated digital infrastructure solutions worldwide. Headquartered in Dallas, Texas, the company operates over 55 data centers across the United States, Europe, and Japan. Specializing in comprehensive solutions for hyperscale and enterprise companies, CyrusOne enables customers to align with their unique business and sustainability goals, catering to the complex needs of AI-driven applications and services workloads. CyrusOne's data centers offer unparalleled flexibility, enabling customers to modernize, simplify, and rapidly respond to changing demands. CyrusOne delivers tailored build-to-suit, colocation, and interconnection solutions that meet the evolving digital needs of its customers. For more information, please visit cyrusone.com.

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SOURCE Calpine Corporation

FAQ

What is the size of the power agreement between Calpine and CyrusOne?

Calpine has agreed to provide 190 megawatts (MW) of power to CyrusOne's new data center facility in Bosque County, Texas.

When will the CyrusOne DFW10 data center be operational?

The new data center is expected to be operational by the fourth quarter of 2026.

How large is the investment in the CyrusOne DFW10 data center project?

The project represents a $1.2 billion infrastructure investment.

What is the size of the first phase of CyrusOne's DFW10 campus?

The first phase of the data center campus will encompass more than 190,000 square feet.

What sustainability features will the new CyrusOne data center include?

The facility will include climate-neutral initiatives, water conservation, biodiversity protection, and capabilities to respond during ERCOT grid emergencies.

How much total power can Calpine deliver to data centers in Bosque, Texas?

Calpine's generation and platform in ERCOT will be capable of delivering up to 400 MWs to data centers located in Bosque, Texas.