Energy Giants KKR and ECP Launch Revolutionary $4 Billion AI Data Center Campus in Texas
Groundbreaking Partnership Delivers First-of-its-Kind Power Integration Model for Hyperscale Computing
Energy Capital Partners (ECP) and global investment firm KKR announced Wednesday the development of a massive 190MW hyperscale data center campus in Bosque County, Texas, marking the inaugural investment from their historic $50 billion strategic partnership designed to scale AI-ready infrastructure across the United States. Set to be operational by the fourth quarter of 2026, the project represents one of the largest artificial intelligence infrastructure developments in the Dallas-Fort Worth region, with a total investment approaching $4 billion.
The multiphase campus will span more than 700,000 square feet and deliver an initial IT capacity of 144 megawatts, with built-in expansion capacity to accommodate future growth. The development is being constructed through a joint venture between ECP and CyrusOne, a leading global data center developer and operator, establishing what industry experts describe as a revolutionary model for delivering integrated digital and power infrastructure at unprecedented scale.
A New Era of Power Integration
What sets this Texas project apart from traditional data center developments is its pioneering co-location strategy with Calpine Corporation's Thad Hill Energy Center, a natural gas power plant that will provide dedicated power through a first-of-its-kind long-term agreement. This arrangement creates what industry leaders believe represents a breakthrough in addressing the critical power constraints that have become the primary bottleneck for AI infrastructure expansion.
"AI demand is rewriting the infrastructure playbook," said Waldemar Szlezak, KKR's Partner and Global Head of Digital Infrastructure. "Hyperscalers don't just need capacity, they need certainty, integration, and speed. This project brings all of that together."
The innovative power model offers 24/7 resilience while supporting local grid stability by enabling power redirection during times of peak demand or scarcity in Texas's ERCOT grid. This flexibility addresses one of the most pressing challenges facing the data center industry as AI workloads continue to drive unprecedented power demands across the technology sector.
Strategic Partnership Addresses $1 Trillion Infrastructure Challenge
The Bosque County project emerges from KKR and ECP's landmark $50 billion strategic partnership announced in October 2024, designed specifically to address the massive infrastructure investment requirements driven by artificial intelligence expansion. According to the partners, scaling AI and cloud infrastructure in the United States is expected to cost at least $1 trillion by 2030, with U.S. data center demand projected to nearly triple during that timeframe.
Tyler Reeder, President of ECP, emphasized the partnership's unique positioning to meet these challenges. "This first investment through our strategic partnership combines ECP's power expertise to deliver reliable near-term power with KKR's strong track record in investing in data center development," Reeder said. "With ample capital, a broad existing asset base, and deep sector relationships, our strategic partnership is designed to source and deliver fully integrated, scaled power infrastructure and data center solutions for hyperscalers."
The collaboration leverages ECP's position as the largest private owner of power generation and renewables in the United States, combined with KKR's extensive experience in digital infrastructure investments. Together, the partners bring more than 8GW of existing data center pipeline capacity and 100GW of currently operating and development-ready power generation to the partnership.
Texas Emerges as AI Infrastructure Battleground
The selection of Bosque County represents a significant victory for Texas in the intensifying competition between states for data center investment dollars. The project capitalizes on the Dallas-Fort Worth region's emergence as one of the fastest-growing compute corridors in the nation, driven by favorable business conditions, robust power infrastructure, and strategic geographic positioning for hyperscale operations.
The campus will incorporate comprehensive sustainable design principles, including climate-neutral initiatives, water conservation measures, and biodiversity protection protocols. Additionally, the facility will maintain the flexibility to support the ERCOT grid during emergency situations, demonstrating the project's commitment to regional power stability while pursuing aggressive growth objectives.
Construction has already commenced on the project, currently designated as DFW10, with the development team targeting rapid deployment to meet the urgent infrastructure demands of hyperscale clients. The compressed timeline reflects the industry's recognition that speed has become as critical as capacity in meeting the requirements of major technology companies deploying AI infrastructure at scale.
Industry Disruption Through Integrated Power Solutions
The Bosque County development establishes a new paradigm for data center construction by integrating digital capacity with dedicated, always-available power in a single coordinated project. This approach directly addresses what has become the primary constraint limiting AI infrastructure expansion: the availability of reliable, scalable power sources capable of supporting the massive energy requirements of modern AI workloads.
Traditional data center development typically involves separate negotiations with utility providers and complex power purchasing agreements that can delay project timelines and create uncertainty for hyperscale clients. The ECP-KKR model eliminates these complications by providing turnkey solutions that combine digital infrastructure with guaranteed power availability from day one of operations.
Industry analysts suggest this integrated approach could become the standard for future large-scale AI infrastructure projects, particularly as single planned data center campuses regularly exceed 1 gigawatt of power demand and require investments of $15 billion or more across data center and power equipment.
Financial Powerhouse Behind the Vision
KKR brings substantial financial strength to the partnership, with a market capitalization of $3.4 billion and impressive revenue growth of 63% over the last twelve months. The investment firm's healthy current ratio of 6.82 and EBITDA of $394.75 million position it well for major infrastructure investments of this magnitude.
The partnership structure allows KKR to fund projects through its existing infrastructure, real estate strategies, and insurance accounts, while ECP contributes through existing and future infrastructure capital pools. This diversified funding approach provides the flexibility and scale necessary to support multiple simultaneous large-scale developments across different markets.
Doug Kimmelman, founder and senior partner of ECP, emphasized the national significance of the partnership's mission. "In order for the US to maintain its advantage in AI, we will need massive new investments in power infrastructure on an accelerated basis that are capable of addressing concerns related to electricity prices and carbon emissions," Kimmelman said.
A Template for National AI Infrastructure
The Bosque County project is being positioned as a model for similar developments nationwide, designed to address the growing requirements of hyperscale operators while enhancing regional power stability. The success of this initial investment could accelerate the deployment of similar integrated campus developments across other strategic markets where ECP and KKR identify suitable opportunities.
With the facility expected to be operational by late 2026, the project timeline reflects the partnership's commitment to rapid deployment while maintaining the highest standards for sustainability and grid reliability. As AI infrastructure demands continue to accelerate, the innovative power integration model pioneered in Texas may prove essential for maintaining American technological leadership in the global AI competition.
The development represents more than just another data center project—it signals a fundamental shift toward integrated infrastructure solutions that address the complex interdependencies between digital capacity, power generation, and grid stability that will define the next generation of AI infrastructure development across the United States.