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Dallas’ Compass Datacenters to spend $200 million in Red Oak

More than half a million square feet is on deck for the company’s campus south of Dallas.

Compass Datacenters has plans for two more facilities in the Ellis County community of Red Oak.

The hyperscale and cloud-oriented data center company will add two buildings totaling more than 500,000 square feet at its campus in the area, dubbed DFW III-II Building 3 and DFW III-II Building 4.

Filings with the Texas Department of Licensing and Regulation show a combined construction cost of $200 million for the two data center buildings near Interstate 35E on Austin Boulevard.

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The work is slated for delivery in 2025.

The company added 375 acres to its Red Oak footprint in recent years. The sale was brokered by Davidson Bogel Real Estate. Compass originally acquired 165 acres of land in 2019 in the city.

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Compass, which is based in Dallas and also has a campus in Allen, teamed up with Schneider Electric last year on a plant set to make components for data centers. The facility is slated to open this year.

Red Oak has become a buzzing hub for data centers.

Google plans to invest more than $600 million on a tract adjacent to Compass’ holdings in Red Oak, its second in the area in addition to Midlothian.

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The multinational giant announced last year it would start with a more than $300 million investment for a data center also along Austin Boulevard.

Billions of dollars are expected to pour into the Dallas-Fort Worth data center space over the coming years.

There’s more than 5.6 million square feet of data center space in D-FW, with only 157,820 square feet of vacancy, according to commercial real estate services firm JLL.

The firm projects there are millions of square feet in the pipeline.

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