JP Morgan Chase Lends $7B on Oracle-Leased Texas Data Center Development

The power of data centers continues to strike a chord in 2025. 

A joint venture between Blue Owl Capital, Crusoe and Primary Digital Infrastructure has sealed a $7.1 billion construction financing from a consortium led by J.P. Morgan Chase for the second phase of a 1.2-gigawatt artificial intelligence data center in Abilene, Texas leased to Oracle. 

The massive balance sheet deal — finalized Wednesday — closed four months after J.P. Morgan supplied a $2.3 billion construction financing package for the initial 206-megawatt phase of the data center development at the Lancium Clean Campus. The sponsors formed a $15 billion joint venture for the project’s second phase on Wednesday. 

“We are very excited about this strategic joint venture, which is funding the largest data center in the U.S,” Bill Stein, executive managing director and chief investment officer of Primary Digital Infrastructure, said in a statement. “This second phase of development will have a huge societal impact, not only creating jobs but also helping to fuel AI innovation in America.” 

 Newmark arranged the latest debt transaction with a team led by Jordan Roeschlaub, Nick Scribani and Ben Kroll in collaboration with Brent Mayo, Douglas Harmon and Andrew Warin.

“We are proud to advise on this landmark transaction between Crusoe, Blue Owl and Primary Infrastructure, which represents a significant milestone in the evolution of sustainable digital infrastructure,” Roeschlaub said in a statement. “This partnership not only validates Crusoe’s innovative approach to energy and computing but also highlights the growing role of infrastructure capital in enabling next-generation technologies.”

Newmark also advised on the first phase of the Abilene data center project, which is part of a $100 billion Stargate joint venture with SoftBank Group and OpenAI aimed at meeting an increasing need for AI. The venture was unveiled in January at the White House with President Donald Trump. 

The second phase of the development will involve the construction of six buildings and bring the project to eight by completion. The two-building phase is slated to be energized by the first half of 2025, according to Newmark. 

“This funding solution represents a pivotal step forward in delivering next-generation digital infrastructure at a scale and speed that meets the demands of AI. innovation,” Mayo said in a statement.  

Another large data center financing this year involving J.P. Morgan was a $2 billion loan provided by the investment banking giant in a joint venture between CIM Group and Novva Data Centers to build a 175-megawatt campus in suburban Salt Lake City.

J.P. Morgan, Crusoe and Blue Owl Capital declined to comment. 

Andrew Coen can be reached at acoen@commercialobserver.com.