Newmark Arranges $2.3 Billion Construction Financing for 206 MW Build-to-Suit Data Center

Rhea-AI Summary

Newmark Group (NMRK) has arranged a significant $2.3 billion construction financing for a major data center project in Abilene, Texas. The facility, a 206 megawatt (MW) Build-to-Suit development, is being developed on behalf of Blue Owl Capital, Crusoe Energy Systems, and Primary Digital Infrastructure.

The project, which broke ground in 2024, is leased to a leading technology company and will feature 300 MW of on-site self-generation capacity. JP Morgan provided the loan, which was secured by Newmark's debt and structured finance team. Initial capacity is expected to be delivered in early 2025.

According to Newmark Research, the data center industry is experiencing rapid growth driven by hyperscalers, AI and HPC users, and large enterprises, with construction pipelines reaching new records last year.

Positive

• Secured major $2.3 billion financing deal for data center development
• Project pre-leased to leading technology company
• 300 MW on-site self-generation capacity enhances facility value
• Strategic location in fast-growing market
• Project aligned with expanding data center industry demand

Negative

• None.

Insights

Financial Analyst

The arrangement of a $2.3 billion construction financing deal marks a substantial milestone for Newmark, potentially generating significant fee revenue while showcasing their growing influence in the data center sector. This transaction demonstrates their ability to structure complex, large-scale deals, which could strengthen their competitive position in the commercial real estate advisory space.

The pre-leased nature of the project to a leading technology company significantly de-risks the development, while the massive 206 MW capacity and 300 MW on-site generation capability positions this as a premium asset in the rapidly expanding data center market. The strategic location in Abilene, Texas, known for its favorable power costs and business environment, adds to the project's long-term viability.

For investors, this deal signals Newmark's successful expansion beyond traditional commercial real estate into the high-growth data center sector, which is experiencing unprecedented demand driven by AI and cloud computing needs. The company's ability to secure financing from JP Morgan and work with prestigious partners like Blue Owl Capital enhances their market credibility and could lead to similar high-value mandates in the future.

Technology Infrastructure Analyst

The technical specifications of this data center project are particularly noteworthy in the context of growing AI computing demands. The 206 MW capacity places this facility among the larger data centers in the U.S., while the 300 MW of on-site self-generation provides important power reliability and potential cost advantages. This oversized power generation capacity offers flexibility for future expansion and ensures operational resilience.

The Abilene, Texas location is strategically significant, offering advantages in power costs, land availability and relative protection from natural disasters. The facility's scale and clean energy capabilities position it well for the increasing compute-intensive workloads associated with AI and machine learning applications, which require both substantial power capacity and reliable infrastructure.

The 'Build-to-Suit' approach with a leading technology company as the tenant suggests the facility will incorporate cutting-edge cooling and power distribution systems optimized for high-performance computing workloads. This type of purpose-built infrastructure is becoming increasingly valuable as traditional data centers struggle to meet the power density requirements of modern AI applications.

NEW YORK, Jan. 22, 2025 /PRNewswire/ -- Newmark Group, Inc. (Nasdaq: NMRK) ("Newmark" or "the Company"), a leading commercial real estate advisor and service provider to large institutional investors, global corporations, and other owners and occupiers, announces the firm has arranged a $2.3 billion loan to capitalize a 206 megawatt (MW), Build-to-Suit data center development in Abilene, Texas on behalf of Blue Owl Capital, Crusoe Energy Systems and Primary Digital Infrastructure. The financing was secured by Newmark Co-President of Global Debt & Structured Finance Jordan Roeschlaub, Vice Chairman Clint Frease and Managing Director Ben Kroll in collaboration with Head of Data Center Capital Markets Brent Mayo. The loan was provided by JP Morgan.

The project is leased to a leading technology company and will bring the customer state-of-the art fit-outs in one of the United States' fastest growing markets. The site will also boast 300 MW of on-site self-generation, furthering the ability for the sponsorship to deliver large scale, clean capacity to its customers. The development broke ground in 2024 and is expected to deliver initial capacity in early 2025.

Newmark Research has reported that the data center industry is growing rapidly, fueled by expanding needs of hyperscalers, AI and HPC users and large enterprises. The increased demand has spurred a surge in new development and land banking for future development, with data center construction pipelines hitting new all-time highs last year.

About Blue Owl
Blue Owl (NYSE: OWL) is a leading asset manager that is redefining alternatives. With $235 billion in assets under management as of September 30, 2024, we invest across three multi-strategy platforms: Credit, GP Strategic Capital, and Real Estate. Anchored by a strong permanent capital base, we provide businesses with private capital solutions to drive long-term growth and offer institutional investors, individual investors, and insurance companies differentiated alternative investment opportunities that aim to deliver strong performance, risk-adjusted returns, and capital preservation. Together with over 1,050 experienced professionals, Blue Owl brings the vision and discipline to create the exceptional. To learn more, visit www.blueowl.com.

About Crusoe Energy Systems
Crusoe is a vertically-integrated AI infrastructure company dedicated to sustainably powered compute. Founded in 2018, Crusoe has dedicated itself to aligning the future of computing with the future of the climate--driving change in advanced computing by taking an "energy-first" approach to AI infrastructure. As builders and operators of clean computing infrastructure, Crusoe reduces both the costs and the environmental impact of the world's expanding digital economy.

About Primary Digital Infrastructure
Primary Digital Infrastructure is led by some of the most experienced leaders in the data center industry, collectively having in excess of 60 years of executive leadership experience. Primary is led by former Digital Realty CEO and Co-Founder Bill Stein, former Managing Director of GI Partners John Sheputis, and former Managing Director of DigitalBridge Peter Hopper.

About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries ("Newmark"), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark's comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform's global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the twelve months ended September 30, 2024, Newmark generated revenues of approximately $2.6 billion. As of that same date, Newmark's company-owned offices, together with its business partners, operated from nearly 170 offices with more than 7,800 professionals around the world. To learn more, visit nmrk.com or follow @newmark.

Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the Company's business, results, financial position, liquidity, and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.

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SOURCE Newmark Group, Inc.

FAQ

What is the value of the construction financing arranged by Newmark (NMRK) for the Abilene data center?

Newmark arranged $2.3 billion in construction financing for the data center project in Abilene, Texas.

What is the power capacity of NMRK's new Abilene data center project?

The data center will have 206 megawatts (MW) of capacity, plus 300 MW of on-site self-generation capability.

When is the Newmark (NMRK) Abilene data center expected to begin operations?

Initial capacity is expected to be delivered in early 2025, following groundbreaking in 2024.

Who provided the loan for NMRK's $2.3 billion Abilene data center project?

JP Morgan provided the $2.3 billion loan for the data center project.

Who are the development partners in NMRK's Abilene data center project?

The project is being developed on behalf of Blue Owl Capital, Crusoe Energy Systems, and Primary Digital Infrastructure.