Newmark Arranges $2.3 Billion Loan for 206 MW Data Center Development in Abilene, Texas
Newmark Group, Inc., a renowned commercial real estate advisor, recently announced the successful arrangement of a $2.3 billion loan to finance a 206 megawatt (MW) Build-to-Suit data center development in Abilene, Texas. The financing was secured by Newmark’s Co-President of Global Debt & Structured Finance, Jordan Roeschlaub, Vice Chairman, Clint Frease, and Managing Director, Ben Kroll, in collaboration with the Head of Data Center Capital Markets, Brent Mayo.
Blue Owl Capital, Crusoe Energy Systems, and Primary Digital Infrastructure Partnership
Blue Owl Capital, Crusoe Energy Systems, and Primary Digital Infrastructure joined forces for the development of this data center, which will be one of the largest in the world. Blue Owl Capital, a leading digital infrastructure investment firm, will own and operate the data center, while Crusoe Energy Systems, an innovator in data center sustainability, will provide the energy infrastructure. Primary Digital Infrastructure, a leading investor and operator of hyperscale data centers, will provide the data center design, construction, and ongoing operations.
Significant Investment in the Data Center Industry
This investment is a testament to the growing demand for data center infrastructure, driven by the increasing digitalization of industries and the rise of remote work. The new data center will provide essential services to large corporations and other organizations, enabling them to store, process, and transmit data efficiently. The development is expected to create new jobs and stimulate economic growth in Abilene and the surrounding areas.
Impact on the Local Community
The construction and operation of the data center are expected to bring significant benefits to the local community. According to a report by the International Business Forum, the data center is projected to create approximately 3,000 jobs during the construction phase and 150 permanent jobs once operational. The project is also expected to generate approximately $127 million in annual spending on goods and services from local businesses.
Impact on the Global Community
Beyond the local community, this data center development will have a global impact. The increasing demand for data center infrastructure is a critical driver of the digital economy. According to a report by Statista, the global data center market size was valued at $116.3 billion in 2020 and is projected to reach $181.3 billion by 2025, growing at a Compound Annual Growth Rate (CAGR) of 9.3% from 2020 to 2025. This data center development in Abilene is a significant investment in meeting this growing demand.
Conclusion
Newmark’s arrangement of a $2.3 billion loan for the development of a 206 MW data center in Abilene, Texas, is a significant investment in the data center industry and the local community. The partnership between Blue Owl Capital, Crusoe Energy Systems, and Primary Digital Infrastructure is expected to create jobs, stimulate economic growth, and meet the increasing demand for data center infrastructure. This development is a testament to the growing importance of data centers in the digital economy and the role that commercial real estate advisors play in financing and developing these essential infrastructure projects.
- Newmark arranges $2.3 billion loan for 206 MW data center development in Abilene, Texas
- Blue Owl Capital, Crusoe Energy Systems, and Primary Digital Infrastructure partnership
- Significant investment in the data center industry
- Impact on the local community: jobs and economic growth
- Impact on the global community: meeting the growing demand for data center infrastructure
