A California-based technology firm is planning a nearly billion-dollar data center project near Love Field in Dallas. This significant investment highlights the city's growing importance as a hub for digital infrastructure and technology. The development involves a multi-phase construction plan set to unfold over the next few years.
Key Takeaways
- Equinix Inc. plans a nearly billion-dollar data center near Love Field.
- The project includes a four-story, 372,517-square-foot facility.
- Initial construction costs are estimated at $543 million.
- A second phase will add $294 million for interior fit-out.
- The facility is expected to be operational by early 2028.
Massive Data Center Project Underway
Equinix Inc., a prominent California-based company, has detailed plans for a substantial data center campus. Filings with the Texas Department of Licensing and Regulation (TDLR) reveal the scope of this project. The initial phase focuses on a large, four-story building designed to house critical digital infrastructure.
The facility, located at 1550 W. Mockingbird Lane, will span 372,517 square feet. This vast space will accommodate various fixtures, mechanical systems, and electrical equipment essential for a modern data center's operation. The estimated construction cost for this first phase is nearly $543 million.
Project at a Glance
- Company: Equinix Inc.
- Location: 1550 W. Mockingbird Lane, Dallas
- Total Estimated Investment: Nearly $837 million
- Phase 1 Size: 372,517 square feet
- Phase 1 Cost: Nearly $543 million
- Phase 2 Cost: Nearly $294 million
Construction Timeline and Phases
Construction for the main data center building is slated to begin in February. The company expects to complete this initial phase by October 2027. This timeline suggests a rapid development schedule for such a large-scale project.
A second filing outlines the interior fit-out of the first and second floors. This subsequent phase is estimated to cost nearly $294 million. Work on the interiors is scheduled to commence in September 2027, with completion anticipated by March 2028. This phased approach allows for operational readiness in stages.
"These filings underscore a significant commitment to expanding digital infrastructure in the Dallas region, reinforcing its role as a key connectivity hub."
Equinix's North Texas Presence
Equinix Inc. already has a strong footprint in North Texas, operating eight data centers, most of which are located within Dallas city limits. The firm made a notable acquisition in 2018, purchasing the landmark Infomart building for an estimated $800 million. This history demonstrates the company's long-term strategy and continued investment in the region's digital economy.
Architectural Details and Site History
Margulies Hoelzli Architecture, a New York-based firm, is leading the design for this ambitious project. The architectural plans submitted to the TDLR provide preliminary details, which are subject to change as the project progresses. This is common for developments of this magnitude.
The land for the new data center has a history. It was previously home to Balfour Publishing. Equinix acquired the property in June 2024, paving the way for the current development. The strategic location near Love Field offers advantages for connectivity and accessibility.
North Texas Real Estate Dynamics
The data center development is part of a broader trend of significant real estate activity across the Dallas-Fort Worth (D-FW) metroplex. While commercial and industrial sectors see new investments, the residential market is experiencing its own unique shifts.
Recently, Dallas-Fort Worth homeowners have been delisting properties at one of the highest rates nationally. Approximately 7.5% of home listings in North Texas were removed from the market. This figure places D-FW alongside cities like Philadelphia and West Palm Beach, Florida, in terms of delisting activity.
- Miami recorded the highest delisting rate at 7.8%.
- Fort Lauderdale followed closely with 7.7%.
- Nationwide, nearly 85,000 sellers pulled their properties in September, marking an eight-year high for that month.
The number of homes sitting on the market for 60 days or more, known as stale listings, also surged. This metric reached its highest September level since 2019. About 15% of homes delisted in September were at risk of selling at a loss, the highest share in five years.
Industrial and Residential Growth
Beyond data centers and residential market shifts, the D-FW region is also seeing substantial industrial development. In Fort Worth, Holt Lunsford Commercial Investments has initiated work on Carter Crossing. This industrial park will comprise three Class A buildings, totaling just over 1 million square feet.
The Carter Crossing project is situated at 6901 Wichita Street. Its groundbreaking pushes Holt Lunsford's total development activity across D-FW close to $1 billion. Construction began earlier this year and is projected to conclude by August 2026. Comerica Bank is providing the financing for this industrial venture.
New Luxury Apartments Emerge
On the residential front, Dallas-based Cawley Partners has broken ground on a new luxury apartment development. Located at 5801 Grassmere Lane in Dallas, this project will introduce 44 "boutique" apartments into the market. These units will be situated within the desirable Highland Park Independent School District.
The apartments will offer diverse layouts, ranging from one to three bedrooms. The average unit size is a spacious 1,205 square feet. Dwell Design Studio serves as the project architect, with New Path Construction & Consulting, LLC acting as the general contractor. This development caters to the demand for high-end living spaces in prime locations.
Strategic Acquisitions in Student Housing
In another significant real estate move, Dallas-based Lincoln Property Company recently acquired Capstone Management Partners. Capstone is a leading firm specializing in student housing and university facilities development and management. This acquisition strengthens Lincoln Property Company's portfolio and expertise in a specialized real estate sector.
Capstone will continue to operate under its established brand, Capstone Development Partners, now powered by Lincoln. Co-founders Bruce McKee and Jeff Jones will retain their leadership roles. William Davis, Capstone's chief development officer, will transition to managing principal.
Alison Daubert, Chief Strategy Officer at Lincoln Property Company, commented on the acquisition. She stated, "Capstone has long been a recognized leader in student housing and campus facilities development. Their specialized expertise complements Lincoln’s national platform with robust resources, allowing us to better support higher education institutions with even greater experience and expertise." This strategic move positions Lincoln Property Company to expand its services to higher education institutions.
