Center text horizontally and vertically without overflow

Question

I have two layers - black shape and red text in Photoshop:

I want to center the text inside the shape horizontally, and vertically. This is easy, I have done it by Layer > Align > Vertical Centers & Horizontal Centers:

However, when the text is long, it leaves the shape:

My question: Is it possible to wrap the text inside the shape? So the outcome would be something like this:

Note: I cannot create type from the shape, because in that case the result would not be aligned vertically:

There is one similar question, however it does not solve vertical center, nor overflowing. Thank you for your advice.

ADD: The trivial method "create rectangular text container" cannot be used now. The text would be automatically filled using Datasets, therefore I have to create text container that is bigger than actual current text (because the real text could be longer). Using this approach, it would center the text container (and not the real text) according to the rectangle.

Answer 1

Photoshop was never meant to do what you're trying to do, and in general has limited typography options.

InDesign is superior in every way at fine typography, and you'll be better off learning the differences and combining PS+ID in the longer term.

Answer 2

Use the rectangular text tool.

With the Text tool (T) click and drag to draw a rectangular text container. Center that with your black rectangle.

Edit: since the question didn't originally mention dynamically filling the textbox with a dataset, this answer only applies to static content.