T
he Perot family has leveraged technological revolutions to build its fortune, and Hillwood is now capitalizing on the latest one by developing AllianceTexas, a 27,000-acre master-planned industrial airport north of Fort Worth. Over 30 years, it has grown into a top destination for logistics firms and data centers, with artificial intelligence companies becoming major tenants due to their large language models and human-friendly chatbots.

    AllianceTexas now includes a 400-acre data center campus, with Meta choosing the area for its $1 billion hyperscale data center. Reid Goetz, Hillwood's industrial development leader, is building facilities to attract tech giants. The conversation has been edited for length and clarity.

    The technology driving demand is changing rapidly, making it challenging for developers to predict future needs. However, constants like power and fiber connectivity are essential when starting a project. Hillwood has taken a forward-thinking approach by preserving pathways for future electrical and fiber extensions, allowing for efficient and cost-effective development.

    When anticipating changes in data centers, core pillars include power, fiber connectivity, and water supply. Power is the top priority, followed closely by fiber connectivity. Hillwood has been working on data centers for over 20 years, with six facilities currently operating at AllianceTexas. The company learned from Facebook's arrival in 2015 and is now adapting to the exponential demand of AI models.

    To power data centers, Hillwood is focusing on state-level generation through ERCOT, exploring nuclear power as a potential solution due to its high capacity. Texas has an abundance of natural gas reserves, providing bridge opportunities for power generation. The company is confident in the strong demand for data centers in DFW, with 65% of the market under construction and 90% pre-leased.

    The data center market is booming, with every major global investor participating. While there may be cyclical slowdowns, Hillwood believes that data centers will become a staple asset class like office and industrial spaces within two decades.