JPMorgan Chase (NYSE:JPM) and Mitsubishi UFJ Financial Group (NYSE:MUFG) are closing in on a deal to underwrite a $22B loan to finance a 1,200-acre date center campus in Texas for Vantage Data Centers, one of the biggest owners of such facilities in the world, according to a media report on Wednesday.
The two banks are leading the debt financing for the $25B “Frontier” data center mega-campus that Vantage Data Centers, the Financial Times reported, citing people briefed on the talks. Private capital groups Silver Lake and DigitalBridge Group (NYSE:DBRG) agreed to put up $3B in combined financing to help build the Frontier campus, the people said.
The speed of the financing illustrates Wall Street’s appetite to get in on deals that finance the infrastructure for artificial-intelligence models.
Vantage Data Centers is a portfolio company of DigitalBridge (NYSE:DBRG). “As investors, we are proud to support Vantage in expanding its platform with a project of this scale, which not only enables the growth of AI but also creates meaningful local impact through jobs and community investment,” said Jon Mauck, senior managing director and head of data centers at DigitalBridge.
The deal follows a crop of other AI projects. Elon Musk’s xAI raised $10B of equity and debt last month to finance the building of data centers in Tennessee. Meta (META), the parent of Instagram and Facebook, is working to raise $129B of debt and equity for its own AI projects, the FT previously reported. Also, BlueOwl has helped in financing a $15B project for Oracle (ORCL) and OpenAI.
The Frontier campus, a 1.4GW hyperscale facility in Shackelford County, Texas, will serve as the cornerstone of the Texas AI hub, supporting global hyperscale customers and bringing significant economic benefits to the region, Vantage said. The Shackelford County development will include 10 data centers totaling 3.7M square feet, designed to support ultra-high-density GPU workloads with advanced cooling systems, it added.