DataBank Secures $250M to Scale AI Data Centers

The data center industry is experiencing unprecedented growth, largely fueled by the surging demand for artificial intelligence (AI) infrastructure. Major tech players are making massive capital commitments to expand their AI capabilities, driving a wave of investment into high-performance computing facilities.

The AI Arms Race: A Billions-Heavy Investment

Leading the charge, OpenAI, in partnership with SoftBank and other backers, has committed at least $100 billion to building data center infrastructure in the U.S. Microsoft isn’t far behind, planning to invest $80 billion in AI-related infrastructure this year. Other tech giants are following suit, ramping up their spending to support the growing demand for compute power.

As AI models become more sophisticated, they require immense computational resources. This has turned high-performance, AI-optimized data centers into one of the hottest investment sectors in tech.

DataBank and the Rise of Compute-Ready Data Centers

One of the biggest beneficiaries of this AI-driven surge is DataBank, a firm specializing in high-performance compute-ready data centers for enterprise clients. The company recently secured $250 million from private equity firm TJC and an additional $600 million in a secondary share offer.

Founded in 2005 and acquired by DigitalBridge in 2016, DataBank has aggressively expanded through acquisitions, now managing over 65 data centers across 27 markets. In the past 18 months alone, the firm has raised a staggering $5 billion—a clear indicator of the surging demand for scalable digital infrastructure.

"Data centers are the cornerstone of digital transformation and artificial intelligence," said Eion Hu, a partner at TJC, reinforcing the industry’s pivotal role in the AI economy.

The "Neocloud" Revolution: The Next Big Bet in AI Infrastructure

Beyond traditional data center providers, a new category of "neocloud" startups is emerging. These firms focus on low-cost, on-demand cloud solutions tailored for AI workloads. Some key players in this space include:

• CoreWeave – A GPU infrastructure provider now valued at $19 billion, thanks to its deep partnerships with Big Tech.
• Lambda Labs – Secured a $500 million special-purpose financing vehicle in April 2023.
• Voltage Park – Announced a $500 million investment in GPU-powered data centers in October 2023.
• Together AI – Raised $106 million in a Salesforce-led funding round in March 2023.

These companies are tapping into a rapidly expanding market, providing scalable compute solutions tailored for AI and machine learning applications.

The Future of Data Centers: A $250 Billion Bet

A McKinsey report projects that spending on mechanical and electrical systems for data centers could exceed $250 billion in the next five years. While environmental concerns—such as energy consumption and water usage—are being scrutinized, the trajectory remains clear: AI is the new electricity, and data centers are the power plants.

As demand for AI infrastructure accelerates, the data center industry is poised for continued expansion, massive investments, and new technological innovations. The next few years will likely see even larger bets on AI-optimized infrastructure, as companies race to build the computing backbone of the future.