DataBank and Goodman Launch Landmark 32MW Data Center to Power AI Growth in Los Angeles

DALLAS, TX – April 07, 2026 – In a significant move to address Southern California's critical data infrastructure shortage, DataBank and Goodman Group have announced a 50/50 joint venture to develop a new 32-megawatt (MW) data center in Los Angeles. The facility, dubbed LAX2, aims to provide much-needed capacity for the region's burgeoning artificial intelligence, cloud, and enterprise sectors.

Located at 3094 E Vernon Avenue in Vernon, CA, the project represents a strategic fusion of Goodman's global development prowess and DataBank's operational expertise. The partnership is poised to inject vital resources into one of the most supply-constrained data center markets in the United States, where demand for high-density compute continues to outpace available inventory. The new data center is scheduled to bring its first 6MW of capacity online in December 2026, with the remaining 26MW being phased in through September 2027.

A Strategic Response to a Critical Shortage

The Los Angeles metropolitan area, a vital hub for content delivery, international connectivity, and cloud services, has long struggled with a scarcity of modern data center space. Its strategic position as a gateway to the Asia-Pacific region, coupled with a dense population, has created immense demand. However, challenges in securing suitable land and, more importantly, large blocks of power have severely limited new development, creating a bottleneck for technological growth.

This new Vernon facility is designed to directly confront this challenge. By bringing 32MW of new power online, the joint venture provides a significant capacity boost. The project's timing is critical, as the rapid adoption of AI is placing unprecedented demands on digital infrastructure. This partnership leverages Goodman's foresight in acquiring the Vernon site back in 2023, where it successfully secured the necessary power, planning entitlements, and design approvals well ahead of construction.

"We're excited to be partnering with Goodman to bring critically needed AI-ready data center capacity to enterprises in the Los Angeles market," said Raul Martynek, DataBank's CEO, in the official announcement. "Together with Goodman's development expertise, we're able to accelerate our expansion in the market and deliver a world-class data center."

Building for the AI Revolution

The LAX2 facility is being engineered from the ground up to be 'AI-ready,' a term that signifies a profound shift in data center design. Unlike traditional facilities built for general enterprise workloads, AI-ready data centers must accommodate the extreme power and cooling requirements of modern GPU-driven computing. AI training models require racks that can draw anywhere from 40 kW to over 100 kW of power—a tenfold increase over legacy infrastructure.

To support this, the Vernon facility will feature advanced electrical distribution systems and high-efficiency cooling solutions, likely incorporating liquid cooling technologies to manage the intense heat generated by high-density server clusters. Furthermore, the networking architecture will be optimized for the massive 'east-west' traffic patterns characteristic of AI workloads, ensuring ultra-low latency and high bandwidth between compute nodes. This purpose-built infrastructure is essential for companies looking to deploy large-scale AI and machine learning platforms without compromise.

The development adds to DataBank's growing national portfolio of more than 850MW under development and complements its existing Los Angeles presence at LAX1, located in the iconic One Wilshire building—one of the world's most interconnected carrier hotels. The addition of LAX2 provides a powerful combination of high-density capacity and rich network connectivity for its customers.

A New Blueprint for Digital Infrastructure

This joint venture highlights a growing trend in the industry: the convergence of large-scale real estate development and specialized data center operations. Goodman Group, a global real estate giant with a property portfolio valued at approximately AUD 100 billion, has strategically pivoted to become a major player in digital infrastructure. The company's 'global power bank' of 6.0 GW and a projected development pipeline of $12.4 billion underscore its commitment to the sector.

Goodman's role in the partnership is to handle the capital-intensive and complex early stages: securing land, navigating zoning, and—most critically—procuring power. DataBank then steps in to manage and operate the facility, leveraging its established platform, deep customer relationships, and two decades of operational excellence. This symbiotic model allows each partner to focus on their core strengths, accelerating the delivery of complex projects.

Anthony Rozic, CEO of Goodman North America, emphasized this synergy, stating, "Power, sites, and capital are critical to being able to build into demand and provide delivery certainty for customers. By partnering with DataBank, utilizing its proven platform and its relationships with more than 2500 enterprise customers, we can optimize the delivery of this critical digital infrastructure to the market."

The Vernon project is just the beginning for the partnership. Both companies have signaled their intent to replicate this model in other capacity-constrained markets across the U.S., suggesting a long-term strategy to address the nationwide demand for AI-ready infrastructure. This venture not only provides a solution for Los Angeles but also establishes a scalable blueprint for future growth in the digital age.