JP Morgan Chase Supplies $2.3B for Texas Data Center Project Leased to Oracle
By Andrew Coen January 22, 2025 2:30 pm
reprints
The power of data center financing continues to show its connectivity and reach new wavelengths in 2025.
A joint venture involving Blue Owl Capital, Crusoe Energy Systems and Primary Digital Infrastructure secured a massive $2.3 billion construction financing package to develop its planned 206-megawatt data center development in Abilene, Texas, leased to Oracle.
J.P. Morgan Chase provided the loan on the sponsorship’s planned build-to-suit data center development at the Lancium Clean Campus that broke ground in late 2022. Blue Owl, Crusoe and Primary Digital Infrastructure formed a $3.4 billion JV for the 998,000-square-foot project last October.
Bloomberg first reported the loan.
The development is 100 percent leased to Oracle, according to Bloomberg, which cited people familiar with the matter. The project is slated for competition in the first half of 2025.
Sponsors behind the Oracle-leased development are considering expanding the footprint of the project as demand for artificial intelligence accelerates, a person familiar with the deal told CO.
Oracle announced a $100 billion joint venture called Stargate on Tuesday with SoftBank Group and OpenAI while at the White House with President Trump, saying the JV was designed to build data center projects to meet an increasing need for A.I. The Abilene project is part of the Stargate initiative.
Newmark (NMRK) arranged the debt transaction with a team led by Jordan Roeschlaub, Jonathan Firestone, Clint Frease and Ben Kroll in collaboration with Brent Mayo, who heads the brokerage firm’s data center capital markets group.
The Abilene deal is nearly four times larger than a $600 construction loan a Société Générale-led syndicate provided to a JV involving Blue Owl, Chirisa and PowerHouse Data Centers. That syndicate plans to build a 50-megawatt data center in Chester, Va., a project that was also facilitated by Newmark.
Another recent data center financing closed by Newmark involved Goldman Sachs originating a $130 million construction loan for a $248 million purchase of two data center properties in Texas and Kansas.
Blue Owl, Crusoe, Primary Digital and Newmark did not immediately return requests for comment.
Andrew Coen can be reached at acoen@commercialobserver.com
