QumulusAI Secures Approval for Modular AI Data Center in Denton, Texas
February 3, 2026
The Dallas-Fort Worth metroplex continues to solidify its position as a critical hub for high-performance computing infrastructure, with another AI-focused development receiving the green light. QumulusAI, a GPU cloud company, has obtained official approval from the Denton City Council for a new modular data center facility, highlighting the sustained demand for scalable compute capacity to power artificial intelligence and related workloads. The approval, granted in January 2026, permits QumulusAI to develop a facility on approximately four acres of city-owned land near Western Boulevard and Jim Christal Road, adjacent to the RD Wells substation. The company has secured a 10-year lease for the site at an annual rate of $20,000, an agreement initially reached in August 2024. According to the approved site plan, the project will involve the deployment of up to eight modular data center units—described as pods or shipping containers repurposed for data processing—along with supporting electrical infrastructure and office space. The facility is expected to require an estimated 20 megawatts of power capacity. Spencer Smith, QumulusAI's director of engineering, stated that the data centers will utilize a closed-loop cooling system with non-conductive fluid, a design that eliminates water consumption. This approach aligns with growing industry emphasis on sustainable operations in water-constrained regions. The project is strategically positioned to serve both AI training and cryptocurrency mining operations. The development is backed by significant capital, following QumulusAI's raise of $500 million in a blockchain-backed facility in October 2025 specifically earmarked for expanding its AI compute infrastructure. Founded in 2019, the company primarily employs prefabricated data center solutions and aims for a power usage effectiveness (PUE) of 1.1 across its footprint. Its long-term strategy includes securing access to 100MW of behind-the-meter natural gas generation. Denton's approval of the QumulusAI project is part of a broader wave of data center investment in the area, which was actively solicited by the city near the substation starting in 2022. Notably, AI cloud provider CoreWeave recently deployed 16,000 GPUs at a separate Denton site developed with CoreScientific. The wider Dallas-Fort Worth market remains highly competitive, hosting major operators like Equinix, CyrusOne, Stream, and CleanArc, underscoring the region's importance in the national data center landscape.
Source: datacenterdynamics
