Compass Datacenters plans to build two more facilities in the Ellis County community of Red Oak.
The hyperscale and cloud-oriented data center company will add two buildings totaling more than 500,000 square feet to its regional campus, called DFW III-II Building 3 and DFW III-II Building 4.
The two data center buildings, located near Interstate 35E on Austin Boulevard, will cost a combined $200 million to build, according to filings with the Texas Department of Licensing and Regulation.
Distribution of the work is scheduled for 2025.
The company has added 375 acres to its Red Oak footprint in recent years. The sale was brokered by Davidson Vogel Real Estate. Compass originally acquired 165 acres of land in the city in 2019.
Compass, which is based in Dallas and also has a campus in Allen, partnered with Schneider Electric last year to open a factory to make components for data centers. The facility is scheduled to open this year.
Red Oak has become a vibrant hub for data centers.
Google plans to invest more than $600 million in land adjacent to Compass' holdings in Red Oak, making it the second in the region after Midlothian.
The multinational giant announced last year that it would begin investing more than $300 million to build a data center also along Austin Boulevard.
Billions of dollars are expected to be poured into data center space in Dallas-Fort Worth over the coming years.
D-FW has more than 5.6 million square feet of data center space, but only 157,820 square feet is vacant, according to commercial real estate services firm JLL.
The company estimates it has millions of square feet in the pipeline.
