Rising demand for artificial intelligence and cloud computing infrastructure is accelerating large-scale data center construction across the United States, with Texas emerging as one of the most active development hubs.
DataBank has secured a $2 billion construction loan to fund the first phase of a new data center campus in Red Oak, Texas, as demand for artificial intelligence and cloud computing infrastructure continues to drive rapid expansion across major US markets.
The financing will support development of three facilities—DFW9, DFW10 and DFW11—within an eight-building campus in the Dallas–Fort Worth region. The initial phase will deliver about 600,000 square feet of data center space and 180 megawatts of IT capacity.
All three buildings in the first phase have already been fully leased, underscoring sustained demand for large-scale computing capacity in one of the country’s fastest-growing data center hubs.
DataBank said the financing, combined with existing power commitments, will accelerate delivery timelines for the campus by roughly 18 months.
“This financing, combined with existing power commitments, accelerates DataBank’s construction and delivery timelines for this campus by approximately 18 months,” said Kevin Ooley, president and chief financial officer. “It ensures our customer will be able to bring critical capacity to market on time and further solidifies Dallas as a core metro for Internet and A.I. infrastructure.”
MUFG Bank Ltd. acted as administrative agent, coordinating lead arranger and sole bookrunner on the transaction. The deal also included participation from a group of digital infrastructure banks and institutional lenders. Davis Polk served as legal adviser.
DataBank’s Green Financing Framework
The loan is structured under DataBank’s Green Financing Framework, which links funding to environmental targets including power usage efficiency, water conservation and carbon emissions reduction. The company has a goal of reaching carbon neutrality by 2030.
The financing comes amid a broader wave of capital raising in the data center sector as operators expand capacity to support AI training workloads and cloud computing demand. DataBank has completed about $4.7 billion in financings over the past year, including a $1.6 billion credit facility expansion and a $1.1 billion hyperscale securitization.
Texas, particularly the Dallas–Fort Worth region, has emerged as a key destination for large-scale data center development due to available power, land and network connectivity.
DataBank New Red Oak, TX Campus: Factsheet
Location : Red Oak, Texas, United States (Dallas–Fort Worth region)
Project Type: Hyperscale data center campus (AI and cloud infrastructure)
Developer: DataBank
New Financing
- Total: $2.0 billion construction loan
- Purpose: Construction of first phase (3 data centers)
Financial Institutions
- MUFG Bank, Ltd. (Administrative Agent, Coordinating Lead Arranger, Sole Bookrunner)
- Syndicate of digital infrastructure banks and institutional lenders
- Legal Advisor: Davis Polk
Project Scope (Phase 1)
- Facilities: DFW9, DFW10, DFW11
- Total space: 600,000 sq ft
- Power capacity: 180 MW
- Status: Fully pre-leased
Development Timeline
- Construction accelerated by 18 months (due to financing + power commitments)
Sustainability Framework
- Green Financing Framework
- Targets:
- Power Usage Effectiveness (PUE) efficiency standards
- Water conservation requirements
- Carbon emissions reduction
- Long-term goal: Carbon neutrality by 2030
Capital Context
- $1.6B credit facility expansion (previous)
- $1.1B hyperscale securitization (previous)
- $4.7B total financing in past 12 months
Market Context
- Driven by AI, cloud computing, and high-density compute demand
- Dallas–Fort Worth emerging as a major U.S. hyperscale hub
