Digital Realty has filed to expand its planned data center campus in the Garland area of Dallas, Texas.
The company has also been granted tax breaks on future data centers in the area, revealing Wells Fargo is to be a customer there.
Another data center in Garland
The company recently filed an application with the Texas Department of Licensing and Registration for Digital Garland DFW37; a 410,000 sq ft (38090 sqm) data center building comprised of a tenant office and six 8MW data halls.
Construction on the $120 million project, located at 1502 Ferris Road, is set to run from March 2025 to October 2026.
The company first announced plans for a campus in Garland on W Campell Road in 2017 and an expansion in 2018.
In 2022, the company filed to develop a ‘one-story, 181,200 square feet (16,800 sqm) core and shell data center' at 1505 Ferris Road. Construction on the project - known as ‘Project Gold Garland' - was due to run from February 2023 to August 2024.
Digital gets tax breaks for Garland data centers
Digital Realty is also planning four more buildings in Garland close by.
In a September 3 development incentive request filing with Garland City Council, known Digital Realty affiliate Digital Garland Campbell LP outlined plans to construct up to four additional data center buildings.
While the exact buildings will depend on tenant configurations and needs, the projects will see a minimum of $160 million in capital investment per building on the 45-acre site at 1702 W. Campbell Road.
"The full build-out anticipates over 1 million sq ft (92,900 sqm) of new data center space constructed," the company said in the request. "Total capital investment is anticipated to involve over $600 million from the developer and additional investment from potential tenants."
City staff recommended approval of the incentive agreement, which included a 50 percent sales tax rebate for 20 years, a four-year 40 percent rebate on business personal property, and a four-year 40 percent rebate on property taxes. The council granted approval for the request.
At the same meeting, Digital-affiliated DDI Garland LLC also received tax breaks for another data center project as part of the company's Garland campus build-out.
An economic development incentive agreement for DDI Garland, which lists the project as Digital Realty Phase 1, was seeking a $500,000 rebate of development fees; a two-year, 40 percent rebate on personal property taxes; and a four-year, 40 percent rate on property taxes.
In the filing, the company said it was constructing an approximately 172,000 sq ft (15,980 sqm) data center on 15 acres at 1505 Ferris Road, which will have Wells Fargo as the tenant.
"The development will involve approximately $117 million in capital investment. At full build-out, the tenant will bring approximately $328 million in additional capital investment," the company said.
City staff had recommended approval of the request.
A spokesperson for Digital Realty declined to provide additional details about the Garland campus to BizJoural, instead referring the publication to the colo firm's recent partnership with Mitsubishi to develop two fully pre-leased data centers in Dallas.
“The City of Garland has become a hot spot for data center development as well as multiple redevelopment and infill projects,” Garland Economic Development Director Ayako Schuster told BisNow in a statement. “Data center projects represent a highly dense form of development in terms of investment.”
Digital Realty currently has more than a dozen data centers in the Dallas-Fort Worth area around Carrollton, Garland, Richardson, and Dallas. It also owns one each in Houston and Austin. It also operates a campus in Lewisville, where it recently filed to build another facility.
NTT has a campus nearby, and Prime is planning to develop a three-building campus in the area.
Wells Fargo has exited office & data center sites in Des Moines, Iowa, and Philadelphia, Pennsylvania within the last 18 months. The company is a cloud customer of Microsoft and Google.
