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

NEW YORK/SUMMIT - Energy Capital Partners (ECP) and KKR (NYSE:KKR) announced Wednesday the development of a 190 MW hyperscale data center campus in Bosque County, Texas, marking the first investment from their $50 billion strategic partnership focused on AI infrastructure growth in the United States. KKR, with a market capitalization of $3.4 billion and impressive revenue growth of 63% over the last twelve months, appears undervalued according to InvestingPro analysis.

The project, expected to be operational by the fourth quarter of 2026, will be constructed through a joint venture between CyrusOne and ECP. The campus will be co-located with Calpine Corp.’s Thad Hill Energy Center, featuring a dedicated power agreement with a hyperscaler anchor tenant. KKR’s strong financial position, evidenced by a healthy current ratio of 6.82 and EBITDA of $394.75 million, positions it well for this major infrastructure investment. (InvestingPro subscribers have access to dozens more financial metrics and insights about KKR’s investment potential.)

The multiphase development will span more than 700,000 square feet and deliver an initial IT capacity of 144 megawatts, with the total investment approaching $4 billion. The project represents one of the largest AI infrastructure builds in the Dallas-Fort Worth region.

"The surge in AI demand isn’t just stretching infrastructure — it’s rewriting the blueprint for how it needs to be built," said Waldemar Szlezak, Partner and Global Head of Digital Infrastructure at KKR.

Tyler Reeder, President of ECP, noted that the partnership "combines ECP’s power expertise to deliver reliable near-term power with KKR’s strong track record in investing in data center development."

The campus will include climate-neutral initiatives, water conservation, and biodiversity protection features. It will also have capabilities to respond during ERCOT grid emergencies, as the power received from Calpine can be redirected to support system reliability during times of grid scarcity.

This project establishes a new model for delivering integrated, AI-ready infrastructure by combining digital capacity and dedicated, around-the-clock power in one of the fastest-growing compute corridors in the nation, according to the press release statement. With KKR maintaining an overall "GOOD" financial health rating from InvestingPro, the company demonstrates strong fundamentals to support this innovative infrastructure development.

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