DataBank Obtains $2B for Dallas Data Center Project

DataBank has secured a $2 billion construction loan for the development of a large-scale data center campus in Red Oak, Texas, within the Dallas-Fort Worth Metroplex.

MUFG Bank led the deal, serving as administrating agent and coordinating lead arranger, as well as sole bookrunner. Institutional lenders active in digital infrastructure financing are providing the loan. Law firm Davis Polk advised DataBank on the transaction.

The site is expected to include a total of eight facilities. The initial funding only supports the first three, which will include 600,000 square feet of data center space and provide 180 megawatts of power capacity. These facilities have already been fully leased.

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All three buildings will feature two stories and include an office component as well, according to the Texas Department of Licensing and Regulation. The combined estimated cost clocked in at $837 million, with completion dates set for 2027 and 2028, the same source shows.

However, the recent financing will accelerate delivery timelines for the campus by roughly 18 months, DataBank CFO & President Kevin Ooley said in prepared remarks.

Located along Stainback Road, the development is roughly 24 miles south of downtown Dallas. This southern submarket has been gaining momentum lately, with other projects including Stack Infrastructure’s 300-megawatt project in Lancaster, Texas, as well as Stream Data Centers’ 240-megawatt project in Wilmer, Texas.

Dallas data center development takes off

The area’s heightened development activity reflects ongoing broader data center trends across Texas, where power availability and land access spur data center construction. Dallas surfaced as a hub for digital infrastructure due to demand for low-latency compute capacity and the market’s proximity to enterprise customers.

At the end of 2025, the Metroplex had 698.7 megawatts of capacity underway, representing 65.4 percent of total inventory, according to a CBRE report. The market went from a vacancy of 19 percent at the start of 2021 to a rate of just 2.4 percent at the end of 2025.