A Texas developer got a $2B loan to build Oracle data centers in the 'burbs (www.businessinsider.com)

A Dallas-based developer, DataBank, has secured a $2 billion loan to construct three data centers in Red Oak, Texas, which is approximately 20 miles from Dallas. This project is particularly significant as it reflects a shift in the AI landscape towards building facilities closer to urban populations, where demand for rapid AI processing is growing. With a combined capacity of 240 megawatts, these data centers will enable faster delivery of AI models to users, capitalizing on the burgeoning market for inference computing—expected to account for 37% of data center workloads by 2030, according to JLL. Despite the urgency driven by AI's rapid absorption into various sectors, the financing landscape has become cautious, as lenders are wary of accumulating significant debts tied to major tech players. DataBank's project is also expected to face these challenges, particularly as part of broader trends affecting capital allocation in the data center market. However, the potential involvement of Oracle as a key tenant underlines the project's strategic importance, positioning it to meet the demands of AI companies looking for proximity to existing fiber networks and consumer hubs. The first building is projected to be operational by Q3 2026, with the last set to be completed by the end of 2027, marking a substantial step forward in the evolving data center ecosystem focused on AI applications.