Dallas data center firm lands $1.45 billion in new financing
DataBank, a Dallas-based data center company, secured $1.45 billion in new financing to support its ongoing growth. This funding includes an $800 million revolving credit facility and $650 million for the construction of its Red Oak campus, which will add a fourth building with 60 megawatts of IT capacity. The Red Oak campus is planned to eventually house eight data centers, each offering 200,000 square feet of space.
Dallas-based DataBank, a prominent data center operator, announced it has secured $1.45 billion in new financing to fuel its expansion and acquisition strategies. The funding package comprises an $800 million revolving credit facility for general corporate purposes and an additional $650 million specifically allocated to advance the development of its Red Oak data center campus, situated just south of Dallas.
The Red Oak campus, spanning approximately 300 acres, is currently under construction and will see the addition of its fourth building thanks to this new financing. This facility is projected to add 60 megawatts of IT capacity to the campus. The latest $650 million brings the total construction financing for the Red Oak project to $2.65 billion, following an initial $2 billion received in April. At full build-out, the campus is expected to feature eight two-story data centers, each providing 200,000 square feet of data center space.
Kevin Ooley, president and CFO of DataBank, emphasized the necessity of a flexible capital structure in response to accelerating demand for data center capacity, stating that the financing enables decisive expansion and deeper customer relationships. The financing involved a syndicate of banks including Citizens Bank, Citibank, MUFG Bank, PNC Bank, TD Securities, Truist Securities, U.S. Bank, Wells Fargo Securities, Barclays, and National Bank of Canada. The broader North Texas region continues to be a leading global data center market.