Energy supplier Constellation said that Calpine LLC, a business unit of Constellation, has signed a new 380-megawatt agreement with CyrusOne, a global data center developer and operator headquartered in Dallas, Texas, to provide connectivity and services for a new data center near the Freestone Energy Center in Freestone County, Texas. The agreement announced on February 9 provides CyrusOne with the power, grid connectivity and site infrastructure needed to support the development of the new facility. The deal also ensures electricity continues to flow to the regional grid and is designed to ensure reliability for all customers and communities in the region, the companies said. Concerns about the impact of data centers on regional power demand have been a major topic of discussion among utilities working to develop AI facilities. Natural gas has become the primary energy source for energy-intensive data centers; several projects have been announced for 2026.
Constellation, CyrusOne Announce Deal for Texas Data Center
The Freestone Energy Center is part of a 1,036 MW natural gas power station project. Source: Constellation Energy Calpine, which has a portfolio of energy projects primarily powered by natural gas, has also entered into an exclusive agreement to provide power, grid connection and on-site infrastructure for the second phase of the Freestone project, which will bring an additional 380 MW of capacity to the grid. The agreements announced Monday are in addition to a 400-megawatt deal announced late last year by Calpine and CyrusOne for the Thad Hill Energy Center in Bosque County, Texas. Freestone Energy Center is located approximately 80 miles southeast of Dallas. Constellation completed its $26.6 billion acquisition of Calpine earlier this year. “This agreement with CyrusOne demonstrates Constellation’s ability to meet the growing demands of the data economy while maintaining grid reliability, creating jobs and economic growth, and benefiting local customers and communities,” said Constellation President and CEO Joe Dominguez. “By leveraging existing infrastructure and grid connections, we can help customers move quickly while ensuring continued reliability for Texans.” “With deep expertise and a presence across the country, Constellation is helping lay the foundation to keep the United States at the forefront of artificial intelligence and digital technologies during this defining moment in our nation’s history.” The project will leverage the company’s Land Power capabilities, a suite of products and services designed to support high-load customers by pairing generation, land and grid access, prioritizing reliability, speed to market and predictability of the broader system. “This agreement strengthens CyrusOne’s commitment to serving the needs of our customers in Texas,” said Eric Schwartz, CEO of CyrusOne. “Partnering with Constellation and Calpine allows us to provide reliable, scalable infrastructure while ensuring grid reliability for local communities.” —Darrell Proctor is a senior editor at POWER.
