The University of Dallas has partnered with real estate developer KDC to build a data center on its vacant lot north of Highway 114.
Robert Watling, vice president for finance & administration and CFO, “There isn’t yet a written agreement with KDC to develop one quite yet. That will take some time, but that is the plan at this point.”
The partners recently received approval for a zoning change, which will allow a commercial development on that lot. This is an important early step in a planned land development because prior to this change, commercial building had not been allowed on the land.
There are still multiple options for how the plot could be used, but the favorite option under consideration is a data center.
KDC is a real estate developer with a history building data centers around the country and experience with commercial building in Irving. In a July press release, KDC executives stated that the infrastructure around UD’s lot is excellent for a data center.
The necessary power lines and fiber optic cable are already in place, and the strategic location at the intersection of Highway 114 and Loop 12 make the land uniquely suited for a data center.
Further, both the university and KDC emphasize the minimal impact and even benefits using the land for a data center would have for the university and surrounding area.
Watling listed many benefits of using the land for a data center, including educational opportunities for faculty and students, low-density development with little vehicular and pedestrian traffic and millions of dollars in city tax revenue from a development with minimal impact on schools and other city services. He also stated that the data center could generate 10 to 20 times more revenue than the next best option.
Watling noted that plans are not yet far enough along to say what the relationship between the data center operators and the university could look like.
Commenting on the motivation behind the development, Watling said, “It is primarily an aspect of President Sanford’s plan to diversify sources of revenue and become less reliant on tuition and fees.”
The DFW area’s rapid growth has made real estate in such a central location as this plot very valuable, and it is likely to gain more value over time. For this reason, the university would like to monetize the land without selling it off.
Clare Venegas, assistant vice president for marketing and communications, emphasized the element of long term revenue from the unused land. “The university is looking at different ways to develop some of this non-core-campus land that we own in a way that would help generate long-term revenue,” said Venegas.
Leasing the land to a developer like KDC for a data center is an excellent way to meet these goals.