How DataBank Secured US$1.45bn of Financing for Expansion

Building a data centre campus is multi-pronged challenge – funding it is another.

As demand for digital infrastructure rises, operators are assembling increasingly sophisticated financing packages to support expansion.

DataBank has become one of the latest to do so, securing US$1.45bn in fresh financing that will strengthen its balance sheet and accelerate growth at its Red Oak campus in Texas.

The company has closed two separate transactions: a US$800m corporate revolving credit facility and a US$650m increase to the financing package supporting its Red Oak data centre campus.

These two deals strengthen DataBank’s balance sheet while adding further momentum to one of the largest data centre developments currently under construction in the US.

Financial flexibility for growth

The larger of the two transactions from a corporate perspective is the new US$800m revolving credit facility, which matures in 2031.

Structured to provide additional liquidity and flexibility, the facility will support a range of corporate activities including working capital, capital expenditure requirements and future growth initiatives.

It also provides additional firepower for acquisitions as DataBank continues expanding its footprint across the North American data centre market.

The financing was arranged by a syndicate of lenders led by Citizens Bank alongside Citibank, MUFG Bank, PNC Bank, TD Securities, Truist Securities, U.S. Bank and Wells Fargo Securities.

Access to flexible credit facilities has become essential for operators pursuing large-scale expansion programmes, as demand for data centre capacity continues to rise and development timelines extend.

Raul K. Martynek, Chief Executive Officer of DataBank says: "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."

Red Oak campus grows again

Alongside the revolving credit facility, DataBank has also expanded the financing package supporting its Red Oak campus in Texas.

The company originally announced US$2bn in construction financing for the site in April 2026. The latest US$650m upsize increases the total financing package to US$2.65bn.

The additional funding will support construction of a fourth building at the campus, adding 60MW of new IT capacity.

Broadening access to capital

The US$650m financing increase combines US$400m of bank financing with US$250m raised through privately placed notes.

The private placement represents a notable milestone for DataBank as its first transaction of this type.

Beyond providing capital for development, the move introduces the company to a wider pool of institutional investors and diversifies its funding sources.

"As demand for data centre capacity continues to accelerate, having a robust and flexible capital structure is essential," says Kevin Ooley, President and Chief Financial Officer of DataBank.

"This revolver, combined with the upsized Red Oak financing and our inaugural private placement, positions DataBank to move decisively as we expand our platform and deepen our relationships with hyperscale, cloud and enterprise customers."

MUFG acted as Lead Placement Agent on the transaction, with TD Securities and Barclays serving as Joint Placement Agents. Citibank, Citizens Bank and National Bank of Canada participated as Co-Placement Agents.

Legal counsel for DataBank on both transactions was provided by Davis Polk & Wardwell LLP.