JPMorgan and Japanese bank MUFG are planning to fund a massive $22 billion project in Texas Data Center Project. The money will help build one of the world’s largest data center campuses, designed to meet the growing needs of AI technology used by big tech companies.
This project will be led by a company called Vantage Data Centers. Vantage started in 2010, originally with help from Silver Lake. Its CEO, Sureel Choksi, helped it grow into one of the world’s largest data center companies. It used to focus on cloud computing but now builds more advanced facilities for AI.
This project will be built on 1,200 acres of land in Shackelford County, Texas, and will include ten large data centers. This data center will be called “Frontier.” It will include 10 data centers, with the first one expected to be ready by mid-2026, and the rest by 2028. To build the data center campus in Texas will cost $25 billion. Two big banks, JPMorgan and MUFG, are working together to arrange a $22 billion loan to help pay for the project. While two investment companies, Silver Lake and Digital Bridge, will invest another $3 billion as equity (money invested in exchange for ownership). The location in Texas was chosen because of cheap electricity and space, making it ideal for powering energy-hungry AI systems.
Data centers are big buildings full of computer servers that store and process a lot of digital information, they’re essential for things like AI, cloud computing, and apps. The demand for data centers is exploding because AI technologies need massive computing power. Tech companies (like Meta, Elon Musk’s xAI, OpenAI, and Oracle) need these buildings but often don’t want to spend all the money themselves, so they partner with investors. This deal shows how quickly demand is growing for the digital infrastructure that supports AI and cloud services.