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

Newmark Group, Inc. (Nasdaq: NMRK), a leading commercial real estate advisor and service provider, has arranged a significant $2.3 billion construction financing deal for a 206 megawatt (MW) Build-to-Suit data center development in Abilene, Texas. The project, which broke ground in 2024, is expected to deliver initial capacity in early 2025. The financing was secured by Newmark's debt and structured finance team, led by 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. JP Morgan provided the loan.

The data center industry is experiencing rapid growth, fueled by expanding needs of hyperscalers, AI and high-performance computing (HPC) users, and large enterprises. According to Newmark Research, data center construction pipelines hit new all-time highs last year, driven by increasing demand for data storage and processing. The Abilene project is a testament to this growth, with its strategic location, pre-leased nature, and massive on-site self-generation capacity.



The project is leased to a leading technology company, ensuring a steady revenue stream and de-risking the development. 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's strategic location in Abilene, Texas, offers advantages in power costs, land availability, and relative protection from natural disasters, making it an attractive option for hyperscalers and AI users.



The Abilene data center project is a significant milestone for Newmark, potentially generating substantial fee revenue while showcasing their growing influence in the data center sector. The deal signals Newmark's successful expansion beyond traditional commercial real estate into the high-growth data center market, 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.

In conclusion, the $2.3 billion financing deal for the 206 MW Build-to-Suit data center in Abilene, Texas, demonstrates Newmark's growing influence in the data center sector. The project's strategic location, pre-leased nature, and massive on-site self-generation capacity position it well for the increasing compute-intensive workloads associated with AI and machine learning applications. As the data center industry continues to grow, driven by expanding needs of hyperscalers, AI, and HPC users, Newmark is well-positioned to capitalize on this high-growth market.