The Daily Dig
DataBank has closed a $2.0 billion construction loan to fund the first three data centers on its new campus in Red Oak, Texas. The company calls it the largest construction financing it has secured to date.
The loan covers DFW9, DFW10, and DFW11, three facilities that together total 600,000 square feet and 180 megawatts of power. All three are already leased. The Red Oak campus is planned for eight data centers in total, making this the opening phase of a much larger build.
Combined with existing power commitments, the financing accelerates the campus delivery timeline by roughly 18 months compared to what was previously possible, according to President and CFO Kevin Ooley. With all three buildings pre-leased, getting that capacity to market on schedule is a firm obligation.
The loan is structured under DataBank's Green Financing Framework, which ties the funding to specific Power Usage Effectiveness targets, water conservation requirements, and carbon emissions criteria. DataBank is targeting carbon neutrality by 2030.
MUFG Bank served as Administrative Agent, Coordinating Lead Arranger, and Sole Bookrunner. Davis Polk advised on the legal side. This transaction brings DataBank's total financing to $4.7 billion over the past year, following a $1.6 billion credit facility expansion and a $1.1 billion hyperscale securitization announced earlier.
Snapshot:
Developer/Operator: DataBank
Campus: Red Oak, TX Campus
Facilities (Phase 1): DFW9, DFW10, DFW11
Location: Red Oak, TX (South Dallas)
Sector: Data Center / Digital Infrastructure
Phase 1 Square Footage: 600,000 SF
Phase 1 Power Capacity: 180MW
Total Campus Scope: 8 data centers planned
Lease Status: All three Phase 1 facilities pre-leased
Construction Financing: $2.0B (largest construction financing to date)
Total Financing (Past 12 Months): $4.7B
Administrative Agent / Lead Arranger: MUFG Bank, Ltd.
Legal Advisor: Davis Polk
Green Financing Framework: Yes; PUE targets, water conservation, carbon emissions criteria
Carbon Neutrality Target: 2030
Delivery Timeline Impact: Accelerated by approximately 18 months
Announcement Date: April 21, 2026
TheJobWalk Thoughts
With three pre-leased buildings, 600,000 square feet, 180 megawatts, and $2.0 billion committed, this project is well past the planning stage. Electrical, mechanical, structural steel, and concrete contractors should be treating Red Oak as an active procurement opportunity, not something to track from a distance.
No general contractor has been publicly named yet. That makes this the right time for subs and suppliers to get in front of DataBank's development team directly, before the procurement structure is set and packages start moving.
Five more buildings remain on this campus after Phase 1. The access earned during this phase is what positions a company for the rest of it.
