Compass Datacenters: Acquisition Of 375 Acres In Red Oak, Texas By Compass Datacenters

May 01, 2023 | Posted by Abdul-Rahman Oladimeji

Compass Datacenters has purchased 375 acres of vacant land in Dallas, Texas, more than tripling its land holdings in the region. According to BizJournal's 'Best Real Estate Deals' awards, the company acquired land in Red Oak, Ellis County, south of Dallas. "This new campus will likely be one of the largest in the country," said Edward Bogel, a partner at Davidson Bogel Real Estate, whose firm facilitated the land transfer to the data center operator. The acquisition is in close proximity to the company's 2019-acquired property in Red Oak, which contains two data centers. Bogel also facilitated the 2019 transaction and stated that the company plans to construct up to sixteen buildings.

Compass contacted Bogel in July 2021 regarding a customer need and requested that the company compile information on what might be available. The land is currently zoned for agricultural purposes, but Compass Datacenters is in the process of rezoning it for Red Oak. Currently, Compass maintains two sites in Texas, one in Allen in the Plano region of North Dallas and the other on Houston School Road in Red Oak. In 2020, the company acquired approximately 225 acres of land in Red Oak to construct up to 350MW of data centers. This campus, located at 300 Houston School Road, has one one-million-square-foot building and another two-hundred-fifty-thousand-square-foot facility that was expected to be completed by the end of last year. Last year, Compass submitted an application to the Texas Department of Licensing and Regulation for a new 250,000-square-foot data center at 481 Austin Boulevard in Red Oak, close to its existing campus. The undertaking worth $100 million is known as Roadrunner Building 2.