Texas Grid Deal Accelerates AI Data Center Launch

A strategic partnership between energy storage firm Eolian and data center developer CyrusOne is accelerating the deployment of AI infrastructure in Texas. By utilizing Eolian’s existing grid connection while its Chisholm Grid battery facility undergoes a major upgrade, CyrusOne expects to launch its new DFW7 data center up to two years ahead of schedule. This innovative arrangement highlights a growing trend where data center developers “bring the data to the power,” bypassing lengthy utility backlogs to meet the surging electricity demands of the artificial intelligence sector.

The Chisholm Grid battery, located approximately 11.27 kilometers northwest of downtown Fort Worth, was originally commissioned in 2021. With a capacity of 100 megawatts and 125 megawatt-hours, the facility was initially designed for short-duration ancillary services. However, as the Texas energy market matures and the Electric Reliability Council of Texas (ERCOT) shifts incentives toward longer-duration storage, Eolian has taken the site offline to expand its discharge capabilities.

Instead of leaving the infrastructure idle during the renovation, Eolian is leasing its high-capacity grid interconnection to CyrusOne. This allows the Dallas-based developer to power its adjacent DFW7 data center almost immediately. For CyrusOne, securing a new 100-megawatt connection through traditional utility channels typically involves a multiyear wait. By leveraging Eolian’s established presence, the company gains significant speed to market and infrastructure certainty.

The collaboration addresses a critical bottleneck in the AI revolution: the massive electricity requirements of new computing hubs. While many industry experts suggest that new gas plants will be the primary solution, supply chain delays for gas turbines often conflict with the rapid timelines required by tech firms. This agreement represents a rare public example of energy storage developers and data centers synchronizing their operations to optimize grid utilization.

The renovation of the Chisholm Grid site will involve restructuring original Samsung battery cells. By adjusting the capacity to 25 megawatts, Eolian can extend the discharge duration to five hours, qualifying it for ERCOT’s upcoming Dispatch Reliability Reserve Service. The company also plans to integrate new batteries to eventually reach a site capacity of up to 250 megawatts, based on its existing grid-connection agreement.

Eolian’s long-term strategy involved placing storage assets near major urban centers and transmission constraints, a move that is now paying dividends as data centers seek proximity to both power and skilled labor. CyrusOne noted that the availability of robust power infrastructure, including a high-capacity substation, was a primary factor in choosing the Fort Worth location.

As the first wave of Texas grid batteries reaches the age for repowering, similar opportunities may arise for other developers. While this specific deal relies on a unique alignment of geography and timing, it serves as a blueprint for how the energy and tech sectors can collaborate to create a more flexible and responsive electricity network.