DataBank Raises $1.45 Billion to Accelerate Data Center Expansion and Red Oak Campus Development
June 16, 2026
DataBank Raises $1.45 Billion to Accelerate Data Center Expansion and Red Oak Campus Development
DataBank, a major operator of data centers across the United States, has secured $1.45 billion in new financing to support its aggressive expansion plans, including the continued build-out of its massive Red Oak campus in Texas. The funding round underscores the surging demand for digital infrastructure driven by cloud computing and artificial intelligence workloads.
The company announced the successful closing of two separate transactions this week: an $800 million corporate revolving credit facility and a $650 million upsize to its existing construction financing for the Red Oak data center campus. The revolving credit facility, which matures in 2031, is designed to enhance DataBank’s financial flexibility, providing working capital, funding capital expenditures, and supporting the company’s growth and acquisition strategy.
“This new revolving credit facility strengthens our financial flexibility and reflects the confidence our lending partners have in DataBank’s business model and long-term growth trajectory,” said Raul Martynek, CEO of DataBank. The facility was arranged by a syndicate of banks led by Citizens Bank, N.A., with joint lead arrangers including Citibank, MUFG Bank, PNC Bank, TD Securities, Truist Securities, U.S. Bank, and Wells Fargo Securities.
The $650 million upsize for the Red Oak campus builds on an existing $2 billion financing package for the project. It will specifically support the construction of the fourth building on the campus, adding 60 megawatts of IT capacity to the rapidly expanding site. This upsize is structured as $400 million in bank financing, led by the same institutions that backed the initial April 2026 announcement, and $250 million in notes placed through a private placement—DataBank’s first transaction of this kind. MUFG served as lead placement agent, with TD Securities and Barclays as joint placement agents, while Citibank, Citizens Bank, and National Bank of Canada acted as co-placement agents.
Founded in 2005, DataBank now operates more than 65 data centers across 25 metropolitan markets in the United States. The latest financing signals a broader industry trend where major data center operators are securing large-scale capital to meet the exponential growth in demand for high-density computing and storage capacity. As enterprises and cloud providers increasingly migrate to AI-ready infrastructure, projects like the Red Oak campus are becoming critical to maintaining supply in key markets such as Dallas and the broader Texas region. Davis Polk & Wardwell LLP served as legal counsel to DataBank on both transactions.
Source: datacenterdynamics
