DataBank Red Oak campus
FJI qualification held or pending: the full four-document gate, including project-specific government evidence, has not yet been accepted. Qualification evidence and decisions →
Project status: Construction financing expanded in June 2026; current commissioning unestablished. Capacity scope: Current comparable IT capacity not established in reviewed profile. How we verify evidence.
← Back to project index- Location
- Texas / Red Oak / South Dallas
- Readiness
- Proposed / development
- Status
- Construction financing expanded in June 2026; current commissioning unestablished
- Confirmed companies
- DataBank; MUFG and other financing participants
- Next milestone
- Commissioning, lease commencement and cash coverage across financed phases.
- Reviewed
- October 6, 2026
Expanded analysis · Original disclosures linked below · CAD and USD preserved as labeled · Company statements attributed; interpretations labeled.
The one-minute investment takeaway
Red Oak has stronger contractual and financing evidence than a speculative land announcement. The initial buildings are leased, and additional funding supports a fourth building. The investor question now shifts toward delivery, debt service and lease cash flow. A loan commitment reduces funding uncertainty but is an obligation to repay, not revenue or profit.
Readiness basis: Classification of evidence in the reviewed profile; strongest documented phase, not full-campus completion. Construction financing expanded in June 2026; current commissioning unestablished Readiness source →
What the sources establish
- Operator / company disclosure Initial financed scope. DataBank’s April 21, 2026 disclosure reports a USD 2 billion construction loan for DFW9–DFW11, three leased buildings totaling 600,000 square feet and 180 MW of planned power. MUFG is named as administrative agent and lead arranger. Financing and leasing do not establish commissioning. Primary source →
- Operator / company disclosure Later financing update. The June 15, 2026 release adds USD 650 million for a fourth building with 60 MW of incremental IT capacity, bringing Red Oak financing to USD 2.65 billion. The upsize includes USD 400 million bank financing and USD 250 million private-placement notes. Primary source →
- Operator / company disclosure Corporate boundary. The June release separately announces an USD 800 million corporate revolver. It is general corporate funding and should not all be counted as additional Red Oak financing. Primary source →
Who receives the money?
Our analysis of disclosed roles. Revenue routes are business-model interpretations, not estimates of booked project revenue.
| Company / exposure | Economic role | What investors need to establish |
|---|---|---|
| DataBank / private | Develops and leases infrastructure. | Commenced rent must cover operating costs, debt service and continuing investment; lease pricing is undisclosed. |
| MUFG / financing role | Named arranger and agent; lead placement agent in the later funding. | Fees and lending economics depend on retained exposure and terms; the loan total is not MUFG revenue. |
| Tenants and computing vendors | Customer commitments support infrastructure demand. | The reviewed releases do not name the tenant or establish hardware orders; leased buildings do not identify supplier earnings. |
How financially meaningful is it? Analyst interpretation
Our analysis: preleasing reduces some demand uncertainty, but contract cancellation, delivery obligations and commencement timing still matter. Undrawn commitments differ from cash spent and debt outstanding. The later financing update changes the development funding scope, while the separate corporate revolver serves broader purposes. Returns to owners depend on cash left after lenders and ongoing capital needs, not on the size of the financing headline.
Debt-service coverage = operating cash available for debt service ÷ scheduled interest and principal. Equity cash then depends on maintenance, expansion funding and distribution restrictions. A construction loan needs a separate draw and refinancing schedule.
Hypothetical illustration: USD 2.65 billion fully drawn at an assumed 7% simple annual interest costs USD 185.5 million; at 8% it costs USD 212 million, a USD 26.5 million difference. Actual draw balances, interest rates, amortization and capitalization are undisclosed; this is not projected Red Oak debt service.
Milestones that would change the assessment
| Milestone | Evidence to watch |
|---|---|
| Physical handover | Track building-by-building commissioning and utility readiness rather than treating financed capacity as operational. |
| Lease commencement | Establish when tenants begin paying, delivery protections and remaining fit-out requirements. |
| Funding conversion | Watch loan draws, completion cost, refinancing and coverage; a larger funding package also adds obligations. |
What could break the investment case?
Our analysis: Late handover can defer income while interest accrues. Refinancing terms can worsen, and concentrated tenants can increase renewal risk. Loan covenants can constrain distributions even after operational success.
What would change our view?
Our analysis: Our confidence would rise with on-time handovers and contracted rent covering full debt service. It would fall with cost overruns, delayed billing or refinancing needs that absorb the anticipated equity cash.
What remains unknown Not established in this review
Current commissioned load, tenant identity, lease price and duration, loan rates and maturities, drawn balances, final cost and site cash flow remain unestablished by the reviewed releases.
Project research for information, not a buy recommendation. Financial illustrations use assumptions, not disclosed site results or management guidance.
Company investor information & quarterly statements
Corporate-disclosure certification held: Research packet retains a corporate disclosure hold.; Private participant disclosure/ownership exception remains unresolved.
DataBank: held-public-quarterly-disclosure-not-established
Corporate disclosures provide company-wide context. They do not establish this project’s revenue, spending, profit, ownership share or operating capacity. Disclosure verification records →