Lone Star PACE, the foremost C-PACE administrator in Texas, alongside PACE Loan Group, a leading provider of C-PACE financing, closed an $11.6 million C-PACE transaction for Vesgro Data Center in Irving, Texas.
The loan will be used to convert a vacant 113,406-square-foot industrial-flex property into a 3 MW colocation data center, delivering approximately 45,000 square feet of raised-floor data hall space. The conversion is led by Infrascale Systems, a local Dallas-Ft. Worth data center developer.
“Projects like this demonstrate how Texas can meet growing digital infrastructure demands while making smarter use of existing buildings and resources,” said Lee McCormick, president of Lone Star PACE. “By helping finance high-efficiency upgrades to an underutilized property, C-PACE supports the conservation of energy and other valuable natural resources while accelerating private investment, job creation and long-term economic growth in our state. This is exactly the kind of redevelopment that strengthens Texas communities and keeps our economy competitive.”
Vesgro, the site’s owner, had originally planned to lease the property at 6001 Campus Circle Drive West as a distribution facility. However, after considering its 8.5 MW power allocation and the growing demand for Tier IV data centers, Vesgro opted to instead partner with Infrascale to convert the property.
The renovation is underway should be complete by September. The C-PACE financing will fund improvements to HVAC systems, lighting, electrical infrastructure, generators and the building envelope.
“This property started as a first-generation data center in the 1980s, when needs were completely different. We will be able to leverage the underlying power by adding modern infrastructure to create a premier enterprise colocation facility,” said Brad Lonberger, CEO of Infrascale.
Set on a 4.69-acre site, the two-story commercial building was built in 1981. It sits near key transportation corridors and strong infrastructure networks, including fiber routes, power transmission lines and utility corridors, which enhance network connectivity and redundancy, both of which are critical for data center operations.
Robbie Pinkas, senior vice president of PACE Loan Group, originated the loan on behalf of Infrascale.
Pinkas also originated a $100 million loan for Patmos’ conversion of the former Kansas City Star printing press into a data center last year. “Given the demand for data centers across the country, we are increasingly seeing conversions of existing industrial projects or specialized facilities into data centers. C-PACE financing is an ideal solution given the electric and mechanical expenses needed to convert those spaces,” he said.
Cloudnium will manage the new colocation data center’s day-to-day operations, including cabinet leasing, staffing, and oversight of critical infrastructure. “This type of data center fills the void created by the new focus on super-sized AI data centers. We are happy to serve the missing-middle location which companies still need,” said Earl Adams, CEO of Cloudnium.
The location, adjacent to DFW Airport and the Beltline Transit Station, offers significant logistical advantages for clients, local and international.