Infrascale wins $11.6m C-PACE loan to convert Dallas site into colo DC
Infrascale Systems, a Fort Worth-based data centre developer, has secured $11.6 million in Commercial Property Assessed Clean Energy (C-PACE) financing to convert a vacant 113,406 sq ft industrial-flex building in the Dallas-Fort Worth area into a colocation facility. The loan was originated by PACE Loan Group and facilitated by Lone Star PACE, the designated C-PACE programme administrator for Texas.
The site, at 6001 Campus Circle Drive West, was originally built in 1981 as a first-generation data centre and had more recently been earmarked for use as a distribution warehouse. Infrascale and property owner Vesgro pivoted to a data centre conversion after identifying an 8.5 MW power allocation attached to the site. The project will deliver approximately 45,000 sq ft of raised-floor data hall space with a 3.0 MW operational capacity. Renovation is under way and is expected to complete by September 2026.
C-PACE proceeds will fund upgrades to HVAC systems, electrical infrastructure, generators, lighting and the building envelope. Cloudnium will manage day-to-day operations, including cabinet leasing, staffing and critical-infrastructure oversight.
"This property started as a first-generation data centre in the 1980s, when needs were completely different," said Brad Lonberger, chief executive of Infrascale. "We will be able to leverage the underlying power by adding modern infrastructure to create a premier enterprise colocation facility."
The C-PACE mechanism
C-PACE is a financing instrument that allows commercial property owners to fund energy-efficiency and resilience improvements, repaying the loan through a property tax assessment rather than a conventional loan structure. Because the obligation is tied to the asset rather than the borrower's balance sheet, it typically offers longer tenors and lower rates than mezzanine debt, making it attractive for capital-intensive infrastructure conversions where mechanical and electrical spend is high.
Robbie Pinkas, senior vice president at PACE Loan Group, noted that data centre conversions of industrial and specialised buildings are becoming a recurring use case for C-PACE capital. Pinkas previously originated a $100 million C-PACE loan for a Kansas City data centre conversion from a former newspaper printing facility, suggesting a clear and growing pipeline for this financing model.
Market context
The Vesgro facility positions itself as what Cloudnium chief executive Earl Adams described as a "missing-middle" colocation asset, serving enterprise tenants that require reliable regional colocation rather than hyperscale-adjacent capacity. That segment has seen increased operator interest as AI-driven demand for large-scale power compresses available capacity at major campus sites and pushes up lease rates.
The Dallas-Fort Worth corridor is one of the most competitive secondary data centre markets in North America, drawing operators because of its power infrastructure, fibre density, and lower land costs relative to coastal markets. The site's proximity to DFW Airport and the Beltline Transit Station adds logistical appeal for clients needing physical access to hardware.
Industrial-to-data-centre conversions are gaining traction across the US as greenfield development timelines lengthen and power interconnection queues deepen. The C-PACE route is likely to attract further attention from developers working on similar repurposing projects, particularly in states with mature C-PACE programme infrastructure. Texas has expanded its C-PACE participation through county and municipal programmes administered by Lone Star PACE, and this transaction adds to the body of evidence that the mechanism can support complex technical fit-outs beyond its original clean-energy retrofit origins.