Constellation, CyrusOne Announce Deal for Texas Data Center
Darrell Proctor
Mon, February 9, 2026 at 1:37 PM EST
2 min read
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Energy provider Constellation said that Calpine LLC, a business unit of Constellation, has signed a new 380-MW agreement with Dallas, Texas-based CyrusOne, a global data center developer and operator, to connect and serve a new data center adjacent to the Freestone Energy Center in Freestone County, Texas. The agreement announced February 9 provides CyrusOne with access to power, grid connectivity and site infrastructure needed to support development of the new facility. The companies said 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 area. Concerns about the impact of data centers on regional power demand have been a major topic of discussion for utilities in areas targeted for development of facilities dedicated to artificial intelligence. Natural gas has emerged as a leading power source for energy-intensive data centers; several projects already have been announced in 2026. [caption id="attachment_250111" align="alignnone" width="640"]
The Freestone Energy Center is part of a 1,036-MW natural gas-fired power station project. Source: Constellation Energy[/caption] Calpine, with a vast portfolio of energy projects primarily powered by natural gas, has also entered into an exclusive agreement to provide power, grid connectivity, and site infrastructure for Phase 2 of the Freestone project, which would bring another 380 MW of capacity online. The agreements announced Monday are in addition to the 400-MW agreements announced in the second half of last year between Calpine and CyrusOne for the Thad Hill Energy Center in Bosque County, Texas. The Freestone Energy Center is located about 80 miles southeast of Dallas. Constellation earlier this year completed its acquisition of Calpine in a $26.6-billion deal. "This agreement with CyrusOne demonstrates Constellation’s ability to meet the growing demand from the data economy while maintaining grid reliability, creating jobs and economic growth, and benefiting local customers and communities. By leveraging existing infrastructure and grid connections, we can help customers move quickly while ensuring continued reliability for Texans," said Joe Dominguez, president and CEO of Constellation. "With deep expertise and a coast-to-coast presence, Constellation is helping lay the foundation that will keep America at the forefront of AI and digital technology during this defining moment in our nation’s history." The project will utilize the company’s Powered Land Capabilities, a suite of products and services designed to support large-load customers by pairing generation, land and grid access in a way that prioritizes reliability, speed-to-market and predictability for the broader system. "This agreement reinforces CyrusOne's commitment to meeting customer demand in Texas," said Eric Schwartz, CEO of CyrusOne. "Partnering with Constellation and Calpine enables us to deliver reliable, scalable infrastructure while ensuring grid reliability for local communities." —Darrell Proctor is a senior editor for POWER.
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