DataBank and Goodman: Tackling LA's Data Centre Capacity Gap

DataBank and Goodman Group are forming a joint venture to deliver a new 32MW data centre in Los Angeles, addressing supply constraints in one of the US’ most competitive colocation markets.

The facility will be located at 3094 E Vernon Avenue in Vernon, California, and will be designed to meet rising demand for high-density capacity from cloud and AI workloads.

The site is scheduled to open in December 2026 with an initial 6MW of capacity, followed by phased delivery of the remaining 26MW through to September 2027.

The project adds to DataBank’s development pipeline, which exceeds 850MW across key markets including Dallas, New York, Atlanta, Kansas City, Houston and Northern Virginia.

Capacity and demand in focus

LA continues to face limited availability of data centre space for high-density deployments required by AI and cloud platforms.

This facility is being built to address those constraints, offering scalable infrastructure that supports intensive compute workloads.

The design reflects growing requirements for power density. AI and machine learning applications typically demand higher density due to the processing needs of graphics processing units and specialised hardware.

Raul Martynek, CEO at DataBank, says the project responds directly to this demand.

"We're excited to be partnering with Goodman to bring critically needed AI-ready data centre capacity to enterprises in the Los Angeles market.

"Together with Goodman's development expertise, we're able to accelerate our expansion in the market and deliver a world-class data centre that will serve hyperscale, AI and enterprise customers with the reliability, scalability and operational excellence they expect from DataBank."

Partnership model and infrastructure delivery

The joint venture combines Goodman’s development capability with DataBank’s operational experience.

Goodman secured the Vernon site in 2023 and completed early-stage work including power procurement and planning approvals while finalising the facility's design.

The project forms part of Goodman’s global power bank of 6GW, the total capacity available or planned across its portfolio.

Goodman is responsible for completing the development, which sits within a broader pipeline valued at US$12.4bn. This includes industrial and low-latency data centres across major metro markets in the US, Europe, Asia and Australia.

DataBank will operate the Vernon facility once complete, expanding its footprint in LA to two sites. The company’s wider platform includes more than 70 data centres and interconnection sites across more than 25 US markets.

Anthony Rozic, CEO of Goodman North America, says: "Power, sites and capital are critical to being able to build into demand and provide delivery certainty for customers.

"Vernon is a landmark project for Goodman in North America and a key component in our local data centre strategy, where we procured the site, power and capital to bring it to the advanced stage it is today.

"By partnering with DataBank, utilising its proven platform and its relationships with more than 2500 enterprise customers, we can optimise the delivery of this critical digital infrastructure to the market."

Expansion across constrained markets

The Vernon facility is the first project under this joint venture, with both companies planning further development in other capacity-constrained US markets.

These are locations where demand for data centre space exceeds available supply, often due to limits on power or planning approvals.

Such constraints increase the value of pre-secured sites and infrastructure readiness. By combining Goodman’s site acquisition and development pipeline with DataBank’s customer base and operational model, the partnership aims to accelerate deployment timelines.

The phased rollout of capacity at Vernon reflects a modular approach to data centre construction, which allows operators to bring capacity online in stages, aligning supply with customer demand while managing capital expenditure.

As demand for AI and cloud services rises, the project illustrates how developers and operators structure partnerships to deliver large-scale digital infrastructure in markets where expansion is complex.