Texas has emerged as a primary hub for massive AI data centers, shifting focus from remote mega-camps to facilities located near major population centers. DataBank, a Dallas-based developer, is capitalizing on this trend by securing a $2 billion construction loan from a banking group led by Mitsubishi UFJ Financial Group (MUFG). The financing will support the construction of three data center buildings in Red Oak, a suburb twenty miles outside Dallas. MUFG is also leading a separate effort to raise an additional $600 million via the private placement market for a fourth building, bringing the total planned capacity of the four-building cluster to 240 megawatts. According to Raul Martynek, CEO of DataBank, the entire campus has been leased to a major hyperscaler. While Martynek declined to identify the specific tenant, he confirmed it is one of the leading technology firms such as Amazon, Google, Microsoft, Oracle, or Meta. The project highlights a strategic shift toward inference computing, which involves processing user prompts and delivering AI model responses with low latency. Proximity to metro areas ensures access to dense fiber networks and reduces physical distance to end-users, enhancing interaction speeds for AI applications. Industry data underscores the growing importance of this segment. JLL reports that in 2025, inference computing accounted for 9% of data center workloads, while training represented 14%. By 2030, projections indicate that inference will surge to 37% of total workloads. Carl Beardsley of JLL Capital Markets noted that the industry is moving beyond model training toward the deployment phase, necessitating infrastructure closer to population centers to handle the resulting traffic. Despite the surging demand for AI infrastructure, the financing landscape remains cautious. Recent reports indicate that major lenders, including JPMorgan Chase and MUFG, have faced challenges selling portions of large debt packages tied to other data center projects, leading to a slowdown in the syndication market. Martynek acknowledged these market headwinds, explaining that the financing process for the Red Oak campus took longer than anticipated. Consequently, the loan for the fourth building was removed from the initial syndication effort and routed through private placement to secure capital from Wall Street investors. This adjustment reflects the broader sentiment among banks regarding the rapid accumulation of debt within the AI sector. The Red Oak campus is designed to ultimately span eight buildings with a total capacity of 480 megawatts. DataBank expects to deliver the first of the initial four buildings in the third quarter of 2026, with the final structure scheduled for completion by the end of 2027. This development marks a significant step in aligning data center infrastructure with the evolving needs of the AI economy, balancing the necessity for speed and proximity with the financial realities of current lending conditions.