CyrusOne and Constellation Forge Major 760MW Data Center Power Deal in Texas
February 9, 2026
In a significant move to address the surging power demands of artificial intelligence and hyperscale computing, data center giant CyrusOne has entered a landmark partnership with energy provider Constellation. The agreement, announced this week, will secure power for a massive new 760-megawatt data center campus in Freestone County, Texas, highlighting the critical and increasingly complex relationship between digital infrastructure and energy grids. The deal centers on a new 380-megawatt agreement signed between CyrusOne and Calpine LLC, a business unit of Constellation. This initial phase will connect and serve a new data center campus to be built adjacent to Calpine’s existing Freestone Energy Center, a natural gas-fired combined-cycle power plant located on approximately 506 acres near Fairfield, about 90 miles south of Dallas. Calpine has also entered an exclusive agreement to provide power, grid connectivity, and site infrastructure for a planned second phase, which will add an additional 380MW of capacity, bringing the total potential development to 760MW. Eric Schwartz, CEO of CyrusOne, stated that the partnership reinforces the company's commitment to meeting robust customer demand in Texas, enabling the delivery of reliable, scalable infrastructure while ensuring grid reliability for local communities. Constellation’s president and CEO, Joe Dominguez, emphasized the strategic importance of the deal, saying, “This agreement with CyrusOne demonstrates Constellation's ability to meet the growing demand from the data economy while maintaining grid reliability, creating jobs and economic growth, and benefiting local customers and communities.” He added that leveraging existing infrastructure allows for speed-to-market while ensuring continued reliability, helping to lay the foundation for American leadership in AI and digital technology. This project follows a similar pattern for CyrusOne, which last year sealed a deal with Calpine for a 400MW campus next to the Thad Hill Energy Center in Bosque County, Texas. The KKR-owned operator, which boasts over 50 data centers across the US and Europe, has a strong foothold in Texas with more than 14 facilities planned or operational, over half of which are in the Dallas-Fort Worth area. The partnership leverages Constellation’s scale following its recent acquisition of Calpine, the largest US generator of electricity from natural gas and geothermal resources, which operates a fleet of 79 facilities with over 27 gigawatts of capacity. The development underscores a key trend in the industry: large-scale data center operators are increasingly forming direct, strategic partnerships with power generators to secure the enormous and reliable electricity supplies required for modern computing, particularly for AI workloads. By colocating with generation assets and utilizing existing grid interconnections, companies like CyrusOne can accelerate development timelines and manage the growing strain on regional power networks, a critical consideration as data center power demands continue to escalate.
Source: datacenterdynamics
