DALLAS — DataBank has secured $2 billion in construction financing to accelerate development of a major data center campus in Red Oak, marking the largest single financing deal in the company’s history.
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The funding, arranged by a consortium of lenders led by MUFG Bank Ltd., will support construction of three data center buildings within the company’s broader eight-building campus located roughly 20 miles south of downtown Dallas.
“This is our single biggest deal to date,” said DataBank President and Chief Financial Officer Kevin Ooley. “We have done so many issuances over time that collectively have been larger, but this is our largest one.”
The financing will fund the initial phase of the campus, including three facilities known as DFW9, DFW10 and DFW11. Together, these buildings will deliver approximately 180 megawatts of capacity across roughly 600,000 square feet.
The deal took about six months to assemble and is anchored by a long-term lease with an undisclosed investment-grade technology tenant secured in mid-2025.
The new funding is expected to significantly accelerate construction timelines. According to Ooley, the first building is now slated to become operational before the end of 2026 — roughly 18 months ahead of earlier projections.
Construction is already underway, with general contractors including Rogers-O'Brien Construction and Yates Construction overseeing development.
The Red Oak campus represents DataBank’s largest project to date, both in scale and capacity. Once completed, the 292-acre site will include eight buildings delivering up to 480 megawatts of power to the Dallas-Fort Worth region — one of the fastest-growing data center markets in the United States.
The company already operates multiple facilities in the region and maintains a global footprint of 76 data centers across 26 U.S. markets and the United Kingdom.
Demand for artificial intelligence infrastructure continues to drive expansion across the sector, with hyperscale and enterprise users seeking additional capacity to support high-performance computing and cloud-based applications.
Ooley previously noted that AI-related workloads are a primary catalyst for new development, intensifying competition among developers to secure land, power and financing.
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The $2 billion loan also aligns with DataBank’s broader sustainability strategy. The financing falls under the company’s green initiative, requiring facilities to meet performance benchmarks related to water conservation and carbon emissions.
DataBank has set a goal of achieving carbon neutrality by 2030, reflecting increasing industry focus on energy efficiency and environmental performance in large-scale data center operations.
The company has raised approximately $4.7 billion in capital over the past year, including expanding its credit facility and refinancing existing assets, underscoring strong investor appetite for digital infrastructure projects.
With the latest financing in place, DataBank is positioned to accelerate delivery of critical infrastructure as demand for data processing capacity continues to surge.
Originally reported by Candace Carlisle in Co Star News.
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