Japan’s Mitsubishi UFJ Financial Group and JPMorgan Chase are reportedly in advanced discussions to underwrite a $22 billion loan for a major Texas data center project, signaling the heightened interest of financial institutions in the expanding digital infrastructure sector.
The proposed 1,200-acre Texas data center project, situated in Shackelford County, will be developed by Vantage Data Centers, a digital infrastructure company supported by private equity firm Silver Lake and asset manager DigitalBridge, according to the Financial Times.
As part of the financing structure, the two investment groups, JPMorgan and Mitsubishi UFJ are committing $3 billion in combined equity to underpin the construction of the campus. Texas has become a strategic location for data center investment due to its relatively low electricity expenses.
Vantage Data Centers also announced separately that it would invest more than $25 billion in the Texas data center project to address increasing demand for AI infrastructure. The Frontier campus, with a total capacity of 1.4 gigawatts, is expected to become the largest facility in Vantage’s global portfolio.
Construction of the campus has already begun and will include ten data centers designed to support ultra-high-density racks exceeding 250 kilowatts each. The first facility is anticipated to be operational by the second half of 2026.
Demand for data centers is intensifying alongside rapid AI adoption, which requires substantial computing infrastructure. As per commercial real estate consulting company JLL, data centers remain among the most popular property assets, underpinned by strong demand from tenants, restricted supply, and increasing rents.
AI platforms such as OpenAI’s ChatGPT and Google’s Gemini demand immense computing resources, which in turn intensifies the requirement for highly specialized infrastructure. Building and maintaining these facilities comes with substantial capital costs, as they depend on advanced semiconductor technology, high-capacity servers, and sophisticated power and cooling networks.
Major technology groups, including Alphabet, Microsoft, and Meta are committing multi-billion-dollar investments to expand data center capacity. As per US bank’s estimates, capital spending on data centers this year alone could add between 10 and 20 basis points to U.S. economic growth, up from 0.1%-0.3% in the previous year.
The data center industry’s market increased by 161% from 2019 to 2025, reflecting the strong growth rate and investment strategic value of digital infrastructure, underlining the importance of JPMorgan And Mitsubishi UFJ funding the texas data centre project.