DataBank Secures Record $2B Construction Loan for AI Infrastructure in Texas

DataBank locks in a massive $2 billion loan to build three AI-ready data centers in Red Oak, Texas, accelerating delivery by 18 months to meet infrastructure demand.

By: AXL Media

Published: Apr 22, 2026, 4:32 AM EDT

Source: Bisnow

Red Oak Expansion and Delivery Timelines

The $2 billion capital injection will facilitate the construction of 600,000 square feet of data center space across three buildings, delivering a combined 180 megawatts of power capacity. According to DataBank CFO Kevin Ooley, this financing paired with existing power commitments effectively accelerates the project’s delivery timeline by approximately 18 months. All three facilities (DFW9, DFW10, and DFW11) are already fully leased, underscoring the voracious appetite for hyperscale capacity in the current market. DFW9 is slated for completion in 2025, while the remaining two facilities are expected to come online in 2028.

Financing Structure and Key Players

MUFG Bank Ltd. led the financing round, acting as the administrative agent, coordinating lead arranger, and sole bookrunner. The deal saw significant participation from a consortium of institutional investors and specialized digital infrastructure banks. Legal advisory for the transaction was provided by Davis Polk. This latest funding follows a busy year for DataBank, which previously announced a $1.6 billion credit facility expansion and a $1.1 billion hyperscale securitization, signaling strong investor confidence in the long-term profitability of the AI-driven infrastructure boom.

Strategic Rationale: Texas as a Global Data Hub

The Red Oak development is part of a broader trend positioning Texas as a primary rival to traditional data center hubs like Northern Virginia. Lower energy costs, vast land availability, and a favorable regulatory environment have allowed the state to amass approximately 4 gigawatts of existing capacity, with another 6.5 gigawatts currently under development. Within this landscape, Dallas-Fort Worth has emerged as the state's dominant zone. By securing power and capital ahead of competitors, DataBank is effectively "land banking" the two most critical components of modern tech infrastructure: electricity and space.