DataBank Reports two new Financing Totaling More Than $1B

Dallas-based DataBank, who is developing a 292-acre data center site in Red Oak, announced it is receiving $1.45 billion in new financing.

The total amount is split across two separate transactions: an $800 million revolving credit facility, and $650 million to upsize its Red Oak campus. The windfall pushes the data center development to $2.65 billion.

In April, DataBank received a $2 billion construction loan to supercharge the first phase of its campus. The $2 billion figure funds the first three of eight total planned data centers on Stainback Road, the Dallas Morning News reported. In total, the buildings will feature around 600,000 square feet and will generate 180 megawatts of power. DataBank claims the three buildings are already fully leased. The $2 billion loan was the largest in DataBank history, and the company secured a total of $6.15 billion in financing in the last year and change.

Red Oak, which sits south of Dallas along I-35 East, is rapidly becoming a haven for data centers. Compass Datacenters added three buildings totaling over 750,000 square feet at its campus in the suburb in 2024, and construction was slated to complete in 2026, according to the publication. Google placed a data center in Red Oak in 2023 for $600 million.

As data center and other tech company production facilities boom across the Texas Triangle, the state is slated to become the largest data center market in the country by 2030. Grid demand from data centers in Texas is projected to push 40 gigawatts by 2028, over four times as much as 2025’s 8 gigawatts. The Electric Reliability Council of Texas, who manages the state’s power grid, says that the peak demand across all usages is 94 gigawatts. In January, Texas reported 387 complete and functioning data centers, with more flocking to the state due to its available land and friendly regulatory environment.

— Hunter Cooke