DataBank Raises $1.45B To Boost DFW Data Center Expansion

DFW’s Data Center Race Heats Up

Dallas-based DataBank has been accelerating its growth plans in North Texas, with the Dallas-Fort Worth region becoming a prime battleground for data center operators responding to soaring enterprise and cloud demand. According to Bisnow, DataBank is banking on over $1.4B in fresh capital to maintain its edge as digital infrastructure needs intensify across the US.

The move comes as industry funding for data center expansion surges, spurred by artificial intelligence adoption and the rise of hyperscale tenants. By pursuing both acquisition and greenfield development, DataBank is positioning itself among the most aggressive players in a high-stakes, capital-intensive sector. Recent CBRE research named DFW the national leader for new data center construction by megawatt volume as of year-end 2025.

The Details

The financing package consists of two deals: an $800M revolving credit facility—set to mature in 2031—organized by a syndicate led by Citizens Bank and including Citibank, MUFG Bank, PNC, TD Securities, Truist Securities, U.S. Bank, and Wells Fargo. Separately, DataBank’s Red Oak campus construction financing was upsized by $650M, combining $400M in bank loans and $250M in privately placed notes, marking the company’s inaugural private placement. 

MUFG led the placement, with TD Securities and Barclays as joint agents, and further support from Citibank, Citizens Bank, and National Bank of Canada. The Red Oak site, spanning 300 acres, will see a fourth building and 60 extra megawatts added. Law firm Davis Polk & Wardwell advised DataBank on both transactions.

Volume Surges In Data Center Financing

Across Dallas-Fort Worth, competition among data center providers has intensified in recent years, with operators rushing to secure land, power, and capital. CBRE reported that DFW ranked as the strongest US market for data center leasing in 2025, with more than 350 megawatts under construction. 

The financing landscape has likewise evolved, as institutional lenders, private placements, and syndications step in to provide larger, longer-duration credit lines. DataBank’s willingness to pursue both a significant revolver and specialized construction loans reflects growing lender comfort and appetite for data center assets, particularly those with proven hyperscale or cloud tenancy. Industry participants note that flexible, robust capital structures are proving to be a differentiator as projects scale in both complexity and size.

Why It Matters

The scale of DataBank’s dual financings signals investor and lender confidence in data center fundamentals, especially in high-growth Sun Belt metros. Demand for digital infrastructure has not only remained resilient but is accelerating as artificial intelligence and cloud computing require greater power density and proximity to large population centers. According to JLL’s 2025 report, Dallas-Fort Worth has consistently ranked among the top regions for both new supply and pre-leasing. 

Another major financing this year backed a Dallas-area project with a multibillion-dollar loan, highlighting lenders’ growing appetite for large campuses. DataBank’s $650M construction upsize directly funds a significant 60-MW expansion, meeting market needs that traditional office and industrial segments can no longer satisfy at similar rates of absorption or return. The $800M revolver gives DataBank the headroom to pursue opportunistic acquisitions and manage working capital, a flexibility increasingly valued as construction timelines stretch and competition for sites intensifies.

Legal and financial structuring is also becoming more sophisticated. The Red Oak private placement, DataBank’s first, taps institutional investors’ growing willingness to back digital infrastructure on longer terms, diversifying both the lender base and the tools CRE operators deploy. 

For the Dallas market—long an anchor for the US data center map—this continued access to multi-layered financing ensures growth can keep pace with the rapid ramp-up in tenant requirements. The trend is a bright spot in an otherwise slow CRE investment environment and could set a template for large-scale funding in other data center clusters nationwide.

What’s Next

With this $1.45B capital injection, DataBank is positioned to fast-track construction at its Red Oak campus and scout for additional acquisitions or expansions in Dallas-Fort Worth and beyond. The increased credit capacity and debut private placement allow DataBank to act swiftly as new opportunities or tenant requirements arise—critical given the tight power supply and heightened site competition. 

As digital infrastructure tenants evaluate regional partners, DataBank’s balance sheet flexibility could provide a strategic edge, with further rounds of financing or M&A likely if demand projections hold. For Dallas-Fort Worth, continued wins for data center capital will reinforce the metro’s leadership in the national—and global—digital infrastructure buildout.