Los Angeles just scored a big new home for the cloud. DataBank has teamed up with Australian real estate heavyweight Goodman Group to build a 32-megawatt data center in Vernon, the industrial pocket just southeast of downtown. The deal marries DataBank’s operations platform with Goodman’s development muscle to bring fresh AI- and cloud-ready capacity to a market where power and land have been in short supply.
Project details and timeline
According to PR Newswire, the two companies have formed a 50/50 joint venture to deliver a 140,415-square-foot, three-story facility at 3094 E Vernon Avenue. The build is designed for 32 megawatts of IT capacity, with the first 6 MW expected to be ready in December 2026, and the remaining 26 MW scheduled to phase in through September 2027. Under the arrangement, Goodman will complete development while DataBank takes over operations as part of its U.S. platform.
What the companies say
"We’re excited to be partnering with Goodman to bring critically needed AI-ready data center capacity to enterprises in the Los Angeles market," DataBank CEO Raul Martynek said in the PR Newswire statement. The companies said Vernon will be the first site for their joint venture and added that they intend to extend the partnership to build additional capacity in other tight U.S. markets.
Why Los Angeles matters
Los Angeles has emerged as one of the country’s most constrained data center hubs, where limited land, power bottlenecks, and slow permitting have left operators scrambling to keep up with cloud and AI demand. DataCenterDynamics notes that the Vernon property sits roughly four miles from downtown and One Wilshire, putting it close to major network crossroads and low-latency routes that enterprise and hyperscale customers tend to chase.
Goodman's run-up and the site’s background
Connect CRE reports that Goodman bought the Vernon parcel in 2023 and pushed it through permitting and site preparation before breaking ground in March 2025. The developer selected the former industrial site for its access to power and fiber, aiming to set up a quick handoff for an operator once the core structure reached an advanced stage.
Networks, infrastructure, and capacity
Industry coverage shows Goodman topped out the three-story shell in September 2025 and configured the design with redundant power feeds and a substation-style setup to support high-density racks. DataCenterDynamics also notes that DataBank already runs a smaller Los Angeles footprint, and that the Vernon facility is poised to broaden the company’s reach for both hyperscale and enterprise clients.
The partners say the joint venture could become a model for more builds in capacity-starved metros where power, land, and capital form the main chokepoints. HostingJournalist points out that 32 MW alone will not fix Los Angeles’ supply gap, but deals that bundle large-scale development with an experienced operator can help get new capacity to market more quickly.
