QumulusAI, a GPU cloud company specializing in AI compute, has been granted approval to construct a modular data center in Denton, Texas. The project will support artificial intelligence and cryptocurrency mining services, adding to the burgeoning data center developments in the Dallas-Fort Worth metro area.
The Denton City Council approved the project in January 2026, allowing QumulusAI to proceed with plans to establish the data center on approximately four acres of land near Western Boulevard and Jim Christal Road, close to the RD Wells substation. The land will be leased from the city for $20,000 annually under a 10-year agreement finalized in August 2024.
The modular site will feature up to eight data center modules, along with switching cubicles and office space. According to the company's site plans, the facility will require an estimated 20MW of power capacity for its operations.
The data center modules are described as "pods, shipping containers, cargo containers, and similar storage containers that are used for the sole purpose of remote storing, gathering, processing, and/or analyzing large amounts of data information."
QumulusAI has committed to an environmentally conscious cooling system. Spencer Smith, the company’s director of engineering, noted that the facility will utilize a closed-loop cooling system with non-conductive fluid, eliminating the need for water in its operations.
The planned facility forms part of QumulusAI's broader efforts to expand its AI compute infrastructure. In October 2025, the company raised $500 million through a blockchain-backed funding initiative to support its data center buildouts. Founded in 2019, QumulusAI has largely relied on prefabricated data centers and aims to achieve a Power Usage Effectiveness (PUE) of 1.1. Its long-term goal is to secure access to 100MW of behind-the-meter natural gas to power its infrastructure.
The company currently offers high-performance computing (HPC) cloud services, featuring access to cutting-edge GPUs such as Nvidia's B200, H200, and H100 models.
Denton and the surrounding Dallas-Fort Worth area have become hotspots for data center development. CoreWeave, for instance, recently deployed 16,000 GPUs at a site in Denton, while other major providers like Equinix, CyrusOne, Stream, and CleanArc continue to expand their footprints in the region.
Denton’s interest in data centers dates back to 2022 when the city issued a call for proposals for developments near the RD Wells substation. QumulusAI’s latest project is expected to further solidify the city's reputation as a key player in the data center industry.
