DataBank Red Oak: $2B Expansion for Oracle’s 180MW AI Cluster

Status: Under Construction / Financing Closed (May 2026)   |   Location: Red Oak, texas

Project Overview

On May 6, 2026, DataBank finalized the integration and development plan for its massive 292-acre Red Oak campus after closing a record-breaking $2 billion construction loan, one of the largest financing deals ever completed for a hyperscale data center project in Texas. The campus is being engineered as a next-generation “Sovereign AI” hub centered around Oracle, which has reportedly leased the first four buildings as part of its long-term artificial intelligence and cloud infrastructure expansion strategy. Designed specifically for advanced AI workloads, the facility will deploy a high-density liquid-to-chip cooling architecture capable of supporting Oracle’s enormous GPU clusters while maintaining energy efficiency at hyperscale levels. The financing package is governed by a Green Financing Framework that requires the project to meet aggressive power usage effectiveness (PUE) and water-consumption benchmarks, reflecting growing industry pressure for sustainable AI infrastructure. DataBank’s early procurement of utility-scale power commitments and transmission access allowed the company to accelerate construction timelines by approximately 18 months compared with competing hyperscale developments. Industry analysts view the Red Oak campus as a transformative project that strengthens South Dallas’ emergence as the leading alternative to Northern Virginia for hyperscale deployments requiring more than 100 megawatts of capacity and rapid AI-ready infrastructure delivery.

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