The University of Dallas has turned to a local developer to maximize its campus holdings in Irving.
The Catholic liberal arts university is working with commercial real estate developer KDC, which has a long history of building office campuses in Irving, such as Wells Fargo’s forthcoming regional hub, and across Dallas-Fort Worth.
However, that’s not what is on deck for the more than 67 acres across State Highway 114 from the University of Dallas’ main campus.
Instead, the parties are proposing data center space.
A zoning application submitted to the city of Irving illustrates how the University of Dallas and KDC don’t believe zoned uses for the land — office and multifamily — are feasible.
The current office market, especially following habits formed during the pandemic, have limited opportunities for new office development for the foreseeable future, according to the application.
“The recently adopted ‘work-from-home’ lifestyle has rendered most office buildings sparsely occupied and their future uncertain,” the application said. “Given the unachievable zoning demands, the University Property cannot be developed without being re-zoned.”
Data center use is more economically feasible for the university, with the considerations of new school district tax revenues, low traffic impact and the addition of high-tech jobs, according to the application.
The University of Dallas and KDC said that the low-built data center structures would not harm the feel of the adjacent Our Lady of Dallas Cistercian Abbey. Cistercian Preparatory School is also near the proposed site.
Most of the acreage sits at the northeast corner of State Highway 114 and Braniff Drive, while another 21 acres are on the northwest corner.
The application pitches 770,000 square feet of data center space, showing that this use would generate approximately $8.2 million in property taxes and business personal property taxes annually for Irving.
The University of Dallas has an undergraduate enrollment of 1,500 students and a graduate student enrollment of 1,100.
Part of the rezoning request teases the idea of the tax-exempt institution adding tax-generating uses to its holdings.
The project, set to go before Irving City Council on Thursday, has been recommended for approval by the city’s Planning and Zoning Commission.
Irving has been prioritizing data center space in recent decision-making.
Investment management firm Harrison Street and PowerHouse Data Centers acquired 50 acres in the city west of Dallas near DFW International Airport for a nearly 1 million-square-foot, 200-megawatt data center campus.
Edged Energy is constructing a smaller-scale concept in Irving that will utilize a lower-water capability. Built specifically for artificial intelligence, the Edged 24-megawatt concept is expected to use 95 million fewer gallons of water annually than its peers.
Data center operator QTS Realty Trust, which first expanded into North Texas about 10 years ago, is also expanding aggressively in the area, adding hundreds of thousands of square feet to its footprint in the coming months.
