RED OAK, Texas — DataBank has secured $2 billion in construction financing to support the first phase of a major hyperscale data center campus in the Dallas–Fort Worth region, reflecting continued growth in artificial intelligence and cloud computing infrastructure demand.
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The financing will fund development of three facilities — DFW9, DFW10 and DFW11 — within an eight-building campus planned for Red Oak. The initial phase is expected to deliver approximately 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 high-density computing infrastructure in one of the fastest-growing U.S. data center markets.
According to the company, the financing package — combined with secured power commitments — will accelerate construction and delivery timelines by approximately 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 of DataBank. “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. served as administrative agent, coordinating lead arranger and sole bookrunner for the transaction, with participation from a syndicate of digital infrastructure banks and institutional lenders. Davis Polk acted as legal adviser.
The loan is structured under DataBank’s Green Financing Framework, linking funding to environmental performance targets such as power usage efficiency, water conservation and carbon emissions reduction. The company has set a long-term goal of achieving carbon neutrality by 2030.
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The financing comes amid a broader wave of capital investment in the data center sector, driven by rapid growth in AI workloads and cloud computing demand. Over the past 12 months, DataBank has completed approximately $4.7 billion in financings, including a $1.6 billion credit facility expansion and a $1.1 billion hyperscale securitization.
The Dallas–Fort Worth region has emerged as a key hub for hyperscale development due to its access to power, land availability and strong network connectivity, making it a preferred destination for large-scale digital infrastructure projects.
The Red Oak campus financing follows continued momentum across the U.S. data center market, including a recently announced $1.5 billion financing package for hyperscale projects in Northern Virginia. Together, these developments highlight sustained capital inflows into digital infrastructure as operators race to meet escalating demand for computing capacity.
As construction progresses, the Red Oak campus is expected to play a significant role in expanding the nation’s AI and cloud infrastructure footprint.
Originally reported by Peter Mwaniki in Construction Review Online.
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