Baylor University (“Baylor”) and Cordia have entered into a Predevelopment Agreement (PDA) to develop a solution to modernize the University’s energy system, delivering reliable, cost-efficient, and sustainable energy for the 1,000-acre campus in Waco, Texas.

Under the PDA, Baylor and Cordia will define the details of a long-term partnership in which Cordia will design, build, finance, operate, and maintain a new Central Utility Plant (CUP) and thermal distribution network to replace the Baylor Energy Complex, which has served the University since 1962.

This strategic investment will provide a strong foundation for Baylor’s future growth and aligns with the University’s sustainability and resilience goals. The new CUP will feature high-efficiency chillers and hot water boilers, supported by a modern distribution network of hot water loops and chilled-water piping. Together, these improvements will replace the outdated steam system with cleaner, more efficient infrastructure designed to serve more than 70 campus buildings—while accommodating Baylor’s emergence as a Christian Research 1 university for decades to come.

Cordia will lead the project as developer and long-term operator, partnering with Texas-based firms including Vaughn Construction, Salas O’Brien, and Shah Smith & Associates to ensure positive economic impact and community benefit in Waco.

“With this agreement, Baylor University is taking the first steps in a transformational investment in its physical campus and the Waco community,” said Patrick Carley, Associate Vice President for Facilities and Operations, Baylor University. “By modernizing our central plant and replacing the underground distribution system, we will increase reliability, redundancy and efficiency, while adding capacity to meet today’s energy demands and ensure Baylor’s students, faculty, staff and research enterprise can thrive for generations.”

“Cordia is honored to partner with Baylor on this forward-looking project,” said Jason Hill, P3 President of Cordia. “Together, we will build clean, reliable energy infrastructure that supports Baylor’s growth, enhances resiliency, and creates long-term value for both the campus and the broader community.”

Construction will not begin until 2027, and it will be phased to allow for minimal service disruptions to the University, with commissioning aligned to Baylor’s growth timeline. Once operational, Cordia is expected to operate and maintain the CUP for a 30-year term, providing budget certainty and long-term performance for the University.