JP Morgan and MUFG to lead US$22b data centre financing deal in Texas: Bloomberg
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The news: JP Morgan and Mitsubishi UFJ Financial Group (MUFG) are leading a USD22 billion ($34.17 billion) loan to support Vantage Data Center’s plan to build a massive data-centre campus in Texas, according to sources cited by Bloomberg.
The number: Silver Lake Management and DigitalBridge Group have also committed USD3 billion of combined equity for the project, the masthead reports.
The debt, which is yet to be priced will support Vantage’s plans for a USD25 billion campus in Shackelford County, Texas.
The context: The news of the financing, first reported by the FT, signals the speed at which US banks are deploying billions to fund properties that big tech will increasingly rely on to power their artificial intelligence ambitions. Meta, Elon Musk’s xAI and OpenAI are a handful of big tech companies which have raised huge amounts of financing to construct data centres.
Vantage announced its plans for the ‘Frontier’ campus on Tuesday, which will include 10 data centres across 1,200 acres.
Sources told the FT that the first of 10 data centres within the campus would be completed by mid-2026 with the remainder built by the end of 2028.
What they said: Frontier is being positioned as part of Texas’ heavy investment into AI technologies, with Governor of the state Greg Abbott commenting on the Vantage news earlier this week: “Everything is bigger in Texas, and that includes innovation and technology. Vantage Data Centers’ $25 billion investment to build a new data center campus will help create thousands of good-paying jobs for Texans and bring revenue to the local and state economies. Partnering with job-creating and innovative businesses like Vantage, Texas will continue to be a national and global leader in this emerging frontier.”
The sources: Bloomberg, FT, Vantage press release
