Dallas-Based DataBank Closes $1.45B Financing, Supports Data Center Project in Red Oak
DataBank has secured $1.45 billion in new financing, including an $800 million corporate revolving credit facility and a $650 million upsize to its construction financing for the Red Oak, Texas data center campus. This funding will support the construction of the fourth building, adding 60 megawatts of IT capacity. Oracle is identified as the tenant for multiple buildings on the campus.
Dallas-based DataBank, a data center company, has successfully closed two new financing transactions totaling $1.45 billion. This includes an $800 million corporate revolving credit facility and a $650 million upsize to its existing construction financing specifically for its data center campus in Red Oak, Texas, located south of Dallas. This brings the total financing for the Red Oak campus to $2.65 billion, supporting the construction of the fourth building and adding 60 megawatts of incremental IT capacity.
The $800 million revolving credit facility, arranged by a syndicate of banks led by Citizens Bank, N.A., matures in 2031 and will be used for general corporate purposes, including working capital and capital expenditures. The $650 million upsize for the Red Oak campus construction was administered by Tokyo-based MUFG Bank, Ltd., which also acted as administrative agent for the initial $2 billion loan secured in April. This upsize also notably includes DataBank's first private placement transaction, diversifying its capital sources.
DataBank CEO Raul K. Martynek stated that the new financing bolsters the company's financial flexibility and reflects lender confidence. President and CFO Kevin Ooley emphasized the importance of a flexible capital structure given the accelerating demand for data center capacity, positioning DataBank for expansion. A Business Insider report, citing a list from the Texas state comptroller’s office, indicates that Oracle will be the tenant for the first three data centers and the planned fourth one at the Red Oak campus.