University of Dallas Partners with KDC for Data Center Development

Categories: College University AthleticsCollege/University News

A conceptual design of the future data center at the University of Dallas.

News Summary

The University of Dallas has announced a collaboration with real estate developer KDC to develop a data center on its vacant land near Highway 114. This move follows the approval of a zoning change that allows commercial development in the area, which was previously restricted. With a projected 770,000-square-foot facility, the data center aims to provide significant economic benefits, including millions in tax revenue for the city while minimizing its impact on the surrounding community. This development aligns with the university’s strategy to diversify revenue streams beyond tuition.

Irving, Texas – The University of Dallas has officially announced a partnership with real estate developer KDC to construct a data center on its vacant lot located north of Highway 114. This project is in its early stages, with plans undergoing necessary approvals, but no formal written agreement has been finalized yet between the university and KDC, as confirmed by Robert Watling, the university’s vice president for finance & administration and CFO.

A significant milestone for this initiative was achieved when the partnership successfully obtained a zoning change approval, allowing commercial development on land that was previously restricted from such uses. This step marks the beginning of what stakeholders hope will be a beneficial venture for both the university and the community.

While the development aims primarily for a data center on the site, other potential uses are still under consideration. KDC, the firm leading the development, boasts extensive experience in constructing data centers across the United States, alongside a robust track record of commercial building within the Irving area.

The infrastructure surrounding the University of Dallas site is reported to be highly suitable for data center operations, thanks to pre-existing power lines and fiber optic cable, which are vital for such facilities. Its strategic location, at the intersection of major transportation routes like Highway 114 and Loop 12, further enhances its desirability as a data center site.

Both the University of Dallas and KDC emphasize that the proposed data center would have minimal impact on the area, while potentially offering a variety of benefits. Key advantages noted by Watling include enhanced educational opportunities for faculty and students, low-density development that would result in minimal traffic congestion, and the generation of millions in city tax revenue with little strain on local educational and city services. Moreover, this data center is projected to yield revenue approximately 10 to 20 times greater than the next best development option.

This project is consistent with President Sanford’s strategy to diversify the university’s revenue streams and reduce dependence on tuition and fees, allowing for sustainable financial growth. The broader context of this development aligns with the rapid growth seen in the Dallas-Fort Worth area, where demand for data center space is expanding amidst rising real estate values in central locations, including land owned by the university.

As part of its long-term strategy, the University of Dallas is looking at innovative ways to monetize its land without the need for selling, exploring options for non-core-campus land that could contribute to the institution’s revenue generation efforts.

Reports indicate that the specifics of the planned data center campus will involve a significant 770,000-square-foot facility. Development will likely roll out in phases over the coming years, with some buildings anticipated to become operational by 2027.

In a decisive move to facilitate the development, the Irving City Council voted in favor of the rezoning request from the University of Dallas and KDC on July 11, paving the way for this transformative project. Once operational, this development is projected to generate around $8.2 million annually in property and business personal property tax revenue for the city, reinforcing the economic benefits expected from this investment.

The site’s prominent location, offering direct access to major highways and airports, makes it particularly appealing for data center operations, with improved surrounding transmission capabilities having been recently upgraded to accommodate high-capacity power needs. As the University of Dallas joins a trend across North Texas, where substantial investments continue to flow into data center developments, this initiative could set a precedent for future projects in the region.