DataBank announced on Apr. 22 that it has secured a $2 billion construction loan to begin the first phase of its data center campus in Red Oak, located about 20 miles south of Dallas.
The announcement marks a significant development for North Texas, an area increasingly recognized as a hub for data centers due to rising demand from artificial intelligence and high power requirements. The new financing will fund the initial three out of eight planned data centers on DataBank’s 300-acre site on Stainback Road. These buildings—named DFW 9, DFW 10, and DFW 11—will total approximately 600,000 square feet and provide up to 180 megawatts of power. According to the company, all three facilities are already fully leased.
State permit filings show that interior work is set to start soon on two of these buildings. Plans include two-story structures featuring data rack containment areas, tenant storage space, and offices. DataBank estimates the interior build-out cost for DFW 10 at $301 million with completion expected by January 2027. Additions to DFW 11 are budgeted at around $315 million with completion projected for March 2027. These filings are preliminary and subject to change.
The company said this loan is its largest ever and follows other major capital raises over the past year: a $1.6 billion credit facility extension and a $1.1 billion hyperscale securitization have brought total financing commitments to $4.7 billion during this period.
Kevin Ooley, President and Chief Financial Officer at DataBank, said in a statement: “This financing, combined with existing power commitments, accelerates DataBank’s construction and delivery timelines for this campus by approximately 18 months.” He added it would help bring “critical capacity to market on time.”
MUFG Bank served as administrative agent on the transaction while Davis Polk provided legal advice for DataBank. Additional banks specializing in digital infrastructure also participated in the deal.
Business Insider reported that MUFG Bank is leading efforts to raise another $600 million loan tied to a fourth building at the same site which has reportedly been leased by an undisclosed major technology firm known as a hyperscaler.
Industry analysts project continued growth in Texas’s data center market; JLL forecasts that Texas could surpass Virginia as the world’s largest hub by 2030.
