DataBank Set to Construct Its Largest Data Center Campus in Texas

DataBank announced plans to develop its largest data center campus in Red Oak, Texas, a 292-acre project featuring eight buildings with 480 megawatts of capacity. The initial phase, scheduled for mid-2026 completion, includes four buildings with a 400-megawatt substation from Oncor delivering up to 240 megawatts of critical IT power. Located 19 miles southwest of downtown Dallas, the campus positions DataBank to capitalize on surging demand from AI and machine learning applications.

President and CFO Kevin Ooley emphasized the facility addresses unprecedented market demand driven by digital transformation, cloud computing adoption, and emerging AI workloads. The Red Oak campus represents DataBank’s third major campus announcement within 12 months, joining Atlanta and Northern Virginia projects that collectively add over 450 acres and 792 megawatts to the company’s portfolio.

“There is a lot of demand for data centers today. We see a continuation of those drivers and entirely new workloads around AI and machine learning, which is incremental to what we’ve seen before and causing pent-up demand.”
— Kevin Ooley, President and CFO of DataBank

The Dallas-Fort Worth region ranks among the top U.S. data center markets, with record preleasing activity claiming 94.5% of capacity under construction. DataBank’s Red Oak campus joins other major providers expanding in the area, including Google, as the region experiences explosive growth driven by AI computing requirements.

Read the complete CoStar coverage of DataBank’s Texas expansion plans.