Oncor Electric Advances Texas Grid with Ellis County Land Acquisition for 765-kV Substation
Oncor Electric Delivery has acquired a strategically located parcel of land on Farrar Road in Ellis County to support the development of a new 765-kilovolt (kV) substation and switch station. The sale was facilitated by Davidson Bogel Real Estate (DB2RE), with brokers Christopher Khoury and Edward Bogel representing the investor. This transaction represents a critical step in Oncor’s plans to expand Texas’ high-voltage transmission network, which is increasingly tasked with meeting rising energy demand driven by hyperscale data centers, industrial growth, and regional development.
Project Overview
The newly acquired site sits in close proximity to the existing Stainback 345-kV substation, making it ideally positioned for integration into Oncor’s planned 765-kV/345-kV substation and switch station. The project is part of a broader effort to build a 765-kV transmission backbone across Texas, designed to move large volumes of electricity efficiently across long distances while supporting the growing demand from urban centers, industrial hubs, and large-scale data center campuses.
The proposed 765-kV substation is expected to be energized in the coming years, pending regulatory approval, and will serve as a critical link in the statewide transmission system. The acquisition also positions Oncor to support rapid energy growth in Ellis County, a key market near Waxahachie and Red Oak. This area has emerged as a hotspot for data center investment, hosting campuses for leading technology companies including Databank, Compass Datacenters, Google, Amazon, Skybox Datacenters, Stack Infrastructure, and QTS Realty Trust.
Significance of the 765-kV Substation
Substations serve as the backbone nodes of the electrical grid, transforming voltage levels, routing power, and delivering electricity efficiently to customers. The new 765-kV facility in Ellis County will fulfill several crucial functions within Oncor’s transmission network:
- Interconnection for the 765-kV Transmission Backbone
The substation will link into high-voltage, long-distance transmission lines that carry large amounts of electricity across Texas with minimal loss. This backbone is essential for balancing supply and demand across the state and connecting remote generation sources with urban and industrial load centers. - Step-Down Transformation
Electricity entering the grid at 765 kV will be stepped down to 345 kV, allowing it to flow seamlessly into regional transmission networks. This ensures reliable service to cities, industrial facilities, and large-scale data centers, where lower-voltage infrastructure is required to deliver power safely and efficiently. - Load Aggregation for Major Customers
Hyperscale data centers and other large-load facilities often connect at 345-kV substations. By serving as a bridge between high-voltage transmission and local distribution networks, the Ellis County substation will aggregate and distribute power to meet growing consumption needs in the region.
Essentially, this new facility acts as a critical link between statewide energy flows and localized demand, enabling Oncor to accommodate future load growth while maintaining grid stability.
Role of Davidson Bogel Real Estate and Regional Marketing
DB2RE played a central role in representing the investor during the transaction. The firm has extensive experience in facilitating land acquisitions for energy and data center development, leveraging its knowledge of Texas’ evolving industrial and commercial markets.
In addition to facilitating the sale, DB2RE is actively marketing up to 1,600 acres of adjacent land. This surrounding acreage is being positioned for further development, with particular attention to data center construction. As companies expand their digital infrastructure to support cloud computing, AI, and other technology-driven initiatives, the demand for well-located sites with robust power access continues to grow. The proximity to the new 765-kV substation enhances the appeal of these parcels, providing potential tenants with direct access to reliable, high-capacity electrical service.
Market Context and Regional Energy Growth
Texas’ power demand has been increasing rapidly, driven by industrial expansion and the proliferation of hyperscale data centers. The state’s energy grid is entering a new era of modernization, where high-voltage transmission lines and substations play a pivotal role in ensuring that electricity can be delivered efficiently and reliably across long distances. The Ellis County project is part of this strategic expansion, addressing both current needs and anticipated future growth.
Ellis County, in particular, has become a magnet for data center developers due to its strategic location, favorable infrastructure, and access to robust power transmission. With major campuses already established by top technology and cloud companies, the area is poised for continued investment. Oncor’s new substation will help meet this surge in electricity demand, enabling the region to sustain growth while maintaining high reliability standards.
The Ellis County 765-kV substation and switch station represent a critical milestone in Oncor Electric Delivery’s efforts to modernize Texas’ electrical grid. By linking long-distance high-voltage lines with local distribution networks, the facility will support both large industrial customers and rapidly expanding data center campuses. With DB2RE actively marketing nearby land, the project also creates opportunities for additional development, reinforcing the region’s position as a hub for data-intensive industries.
This transaction highlights the interplay between energy infrastructure development and regional economic growth. As Oncor advances its transmission capabilities, Ellis County is expected to continue attracting investment from technology firms, industrial operators, and other large electricity consumers, cementing its status as a critical node in Texas’ evolving power landscape.
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