Newmark Facilitates $7.1 Billion Construction Loan to Develop AI Data Center

Rhea-AI Summary

Newmark Group (NASDAQ: NMRK) has arranged a $7.1 billion construction loan for the second phase of a major AI data center project in Abilene, Texas. The loan, led by J.P. Morgan, will fund a joint venture between Blue Owl Capital, Crusoe, and Primary Digital Infrastructure. The total project value is $15 billion, creating a 1.2-gigawatt AI data center complex. The second phase includes constructing six additional buildings, bringing the total to eight buildings. Phase one, which began in June 2024, includes two buildings with 200+ megawatts and is expected to be operational by H1 2025. Phase two construction started in March 2025, with expected completion in mid-2026. Newmark previously advised on phase one's equity and debt financing.

Positive

• Secured massive $7.1 billion construction loan deal, demonstrating Newmark's significant deal-making capabilities
• Second major deal involvement in the same project, having also secured financing for phase one
• Project positions Newmark in the growing AI infrastructure sector
• Transaction with high-profile clients (Blue Owl Capital, JP Morgan) strengthens market position

Negative

• None.

Insights

Financial Services Analyst

Newmark secured a massive $7.1B loan for AI data center development, showcasing its critical role in high-value commercial real estate financing.

Newmark's arrangement of a $7.1 billion construction loan represents an extraordinary transaction in the commercial real estate financing market. This deal for the Blue Owl Capital, Crusoe, and Primary Digital Infrastructure joint venture isn't just notable for its size—it demonstrates Newmark's capabilities in structuring complex, large-scale financing packages for cutting-edge infrastructure projects.

The loan facilitates the second phase of a $15 billion joint venture to build a 1.2-gigawatt AI data center in Abilene, Texas. What's particularly significant is that Newmark has been involved from the beginning, having previously advised on the first phase, securing both equity and debt financing for that portion. This end-to-end advisory role showcases the company's comprehensive service capabilities in the high-growth data center sector.

The project's scale is remarkable—eight buildings with 1.2 gigawatts of capacity upon completion. The first phase (two buildings, 200+ megawatts) began construction in June 2024 with energization expected in early 2025. The second phase (six buildings) is projected to be energized by mid-2026. This accelerated timeline is being positioned as setting new standards for greenfield, hyperscale digital infrastructure delivery speed.

For Newmark, this transaction demonstrates its growing influence in the specialized data center capital markets space. By connecting AI infrastructure developers with traditional financing sources through a JP Morgan-led consortium, Newmark is establishing itself as a vital intermediary in a sector seeing tremendous growth due to AI computing demands.

NEW YORK, May 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 company arranged a $7.1 billion construction loan for Blue Owl Capital, Inc., Crusoe and Primary Digital Infrastructure. The loan, provided by a consortium led by J.P. Morgan, will fund the second phase of a $15 billion joint venture to fund a 1.2-gigawatt AI data center in Abilene, Texas.

Newmark's Co-President of Global Debt & Structured Finance Jordan Roeschlaub, Vice Chairman Nick Scribani and Managing Director Ben Kroll arranged the funding, in collaboration with Head of Data Center Capital Markets Brent Mayo, Co-Head of U.S. Capital Markets Doug Harmon and Co-Head of Strategic Advisory 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," said Roeschlaub. "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."

"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," said Mayo. "Newmark played a critical role in structuring and securing the capital required to bring this transformative project to life, aligning innovative operators with long-term institutional partners."

Under the terms of the joint venture, Crusoe in combination with funds managed by Blue Owl's Real Assets platform along with Primary Digital Infrastructure will jointly sponsor the construction of six new buildings, which will bring the center to eight buildings upon completion. Construction of the first phase, comprising two buildings and 200+ megawatts, began in June 2024 and is expected to be energized in the first half of 2025. Construction of the second phase, consisting of the six additional buildings and a total of 1.2 gigawatts, began in March 2025 and is expected to be energized in mid-2026, setting a new bar for the speed of delivery for greenfield, hyperscale digital infrastructure projects.

Newmark also acted as strategic advisor on the first phase, securing both equity and debt financing.

About Crusoe:
Crusoe is on a mission to align the future of computing with the future of the climate. Crusoe provides a reliable, scalable, cost-effective, and environmentally friendly solution for AI infrastructure by harnessing large-scale clean energy, building AI-optimized data centers, and empowering builders to reach their AI potential. Crusoe is empowering the AI revolution. To learn more, visit http://crusoe.ai.

About Blue Owl:
Blue Owl (NYSE: OWL) is a leading asset manager that is redefining alternatives®.
With $273 billion in assets under management as of March 31, 2025, we invest across three multi-strategy platforms: Credit, GP Strategic Capital, and Real Assets. 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 1,200 experienced professionals globally, Blue Owl brings the vision and discipline to create the exceptional. To learn more, visit www.blueowl.com.

About Primary Digital Infrastructure
Primary Digital Infrastructure is an advisory and investment platform that accelerates the growth of hyperscaler and AI-driven data centers. Founded by industry pioneers Bill Stein, David Ferdman, Peter Hopper, and John Sheputis, Primary Digital Infrastructure provides flexible capital solutions to premier data center owners and operators—including recapitalizations, outright acquisitions, and forward takeouts. The firm empowers operators to unlock capital, fuel expansion, and meet the rising demand for next-generation digital infrastructure. To learn more, visit https://primaryinfra.com/.

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 March 31, 2025, Newmark generated revenues of over $2.8 billion. As of March 31, 2025, Newmark and its business partners together operated from 165 offices with approximately 8,100 professionals across four continents. 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 size of the construction loan Newmark arranged for the AI data center in Texas?

Newmark arranged a $7.1 billion construction loan for the second phase of the AI data center project in Abilene, Texas.

When will the second phase of Newmark's (NMRK) AI data center project be completed?

The second phase of the AI data center project is expected to be energized in mid-2026.

How many buildings will the AI data center have after completion?

The AI data center will have a total of eight buildings upon completion - two from phase one and six additional buildings from phase two.

What is the total capacity of the AI data center project arranged by Newmark (NMRK)?

The AI data center will have a total capacity of 1.2 gigawatts upon completion.

Who are the key partners in the AI data center project facilitated by Newmark?

The key partners are Blue Owl Capital, Crusoe, and Primary Digital Infrastructure, with J.P. Morgan leading the lending consortium.