ECP and KKR to develop $4 billion data center campus in Texas

Energy Capital Partners and KKR (NYSE: KKR) announced plans to develop a 190 MW hyperscale data center campus in Bosque County, Texas, representing the first investment from their $50 billion strategic partnership focused on AI infrastructure.

The project involves a joint venture with CyrusOne and will encompass more than 700,000 square feet with an initial IT capacity of 144 megawatts. The campus is expected to represent a total investment approaching $4 billion and is scheduled to be operational by the fourth quarter of 2026.

The data center will be located adjacent to Calpine Corp.'s Thad Hill Energy Center, with Calpine securing a long-term contract to supply dedicated power to the campus. This arrangement allows power from Calpine to be redirected to support grid reliability and meet local demand during periods of grid scarcity.

"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," said Tyler Reeder, President of ECP.

The campus will feature climate-neutral initiatives, water conservation measures, and biodiversity protection capabilities. It will also be designed to respond during ERCOT grid emergencies.

Energy Capital Partners, founded in 2005, focuses on electricity and sustainability infrastructure investments. In 2024, ECP combined with London-listed Bridgepoint Group to create a firm with $87 billion in assets under management across private equity, credit and infrastructure.

Construction of the multiphase project is currently underway, according to the companies' joint statement.

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