3 min read February 2024 — In an interview with Invest:, Eric Schwartz, CEO of CyrusOne, talked about the company’s significant contribution to Texas as a data center developer and operator. CyrusOne focuses on building digital infrastructure for a diverse range of clients, including major technology companies, and plays a pivotal role in supporting the growth of the digital economy, particularly in the Dallas-Fort Worth area, he said.
What is the overall contribution of CyrusOne in Texas?
Our focus is built around being a data center developer and operator. We are building digital infrastructure for a range of clients, ranging from the world’s largest technology companies to smaller technology-focused companies. We’ve built that infrastructure around the world but we have a substantial presence here in the Dallas-Fort Worth area. That infrastructure is the basis for what our customers do in building the digital economy. Dallas is a major hub for digital infrastructure across the United States, and it is growing rapidly. In particular, over the last year, the growth of AI has created a new wave of demand for infrastructure, and CyrusOne is investing in supporting that. We are a development company that works with a number of construction companies to build these sites and we bring a lot of technical expertise in operating them. We are attracting people and resources and an entire value chain that works with our team here in Dallas.
What developments are making it easier for you to deliver a more complete service to customers?
We are a company built around assets, so very large buildings with intense electrical infrastructure that powers everything. Increasingly our business is about delivering that infrastructure and integrating with our customers at a software level. The performance of the building and the performance of the infrastructure is being monitored with numerous sensors, and we are building the technology platforms that allows the integration of our tech and software with that of our customers. That is an ongoing effort that continues to get more sophisticated and inherently has to be secure. We are working with cybersecurity providers to ensure what we build is safe for us and our customers.
On top of that, the operations of these facilities are complex but also great opportunities for optimization and efficiency. As much as we are supporting the deployment of AI, we are also exploring how it can be used to drive the reliability and security of our services as well as efficiency.
What are some of the most pressing needs for broadband and infrastructure?
There is plenty of room for growth. We are engaged in constant dialogue with our customers and their expectations are that we will continue to grow, meaning we need to continue building new capacity for them. It involves quite a bit of coordination between ourselves and utility companies to ensure the infrastructure we are building aligns with the utility grid. The prime mover in our industry is still very much about growth.
The second element I would point to as critical is getting to a carbon-neutral footprint. Even as we design data centers, we put a lot of energy into the exterior landscaping to ensure it is biocompatible with our surroundings. I do think that over time, as data centers become a larger and more important part of economic infrastructure, there will be more opportunities for us to cooperate and collaborate with utility companies for managing the larger grid, which is important for the resilience of the economy.
How does the increase in population flowing into the area impact calculated growth?
We need capable people to support the growth, so the influx of new talent to the area is essential for us because we need talent to grow across all functions of the business. Being in Dallas with access to the talent pipeline is essential to our success. Broader business infrastructure here is excellent, especially in terms of access through the airport. The infrastructure beyond that from transportation and government support is valuable as well. The structure of the Texas energy markets, which are different from the rest of the country, has also brought a lot of flexibility for us.
What are some of the aspects of the region that make it attractive for business?
The depth of the technology community and industry is underappreciated. There are quite a few technology companies spread throughout the area and the number is growing. Leading companies like Texas Instruments have a big presence here. The depth and capabilities of education institutions in the area is also known but is getting more investment now in order to grow. I would also say the business community in North Texas has a level of energy and determination that I find to be unique and that drives innovation and growth. It is a welcoming community of new and old businesses and the opportunities there are real and influential, making the area very unique.
What legislation or regulation are you keeping an eye on?
The state has been very active in providing tax incentives for technology companies to deploy digital infrastructure here in the state and a number of our customers have benefited substantially from that. We work with various members of government to discuss other programs that would drive even further investment and the region has a reputation for supporting new investment.
I would also say the state has built a large supply of renewable energy and that investment continues, whether that is wind or solar. Our customers want to know we can source power from renewable sources so the growth of that industry supports us as well. Another factor that is underappreciated about the area is the increased investment in talent at all levels. We rely on the technical capabilities of our teams to provide the frontline service and operations that we do on a rigorous basis. Knowing that we can access the depth of capability that is here is critical for us.
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