Oracle Data Center Secures $16B Financing with $2B Equity, $14B Debt
Related Digital is finalizing a $16 billion financing package for a new Oracle data center campus in Saline Township, Michigan, dedicated to supporting OpenAI applications. The deal includes a $2 billion equity investment from Blackstone and a $14 billion debt offering led by Bank of America, closing this month.
1. Financing Structure
Related Digital is finalizing a $16 billion finance package to fund Oracle’s new data center campus. The structure features a $2 billion equity commitment from Blackstone and a $14 billion debt offering led by Bank of America, transitioning from an initial construction loan to a bond issuance.
2. Project Purpose and Progress
The data center, located in Saline Township, Michigan, will power Oracle services and host applications for OpenAI as part of a broader AI infrastructure push. Construction is on schedule with initial steel columns installed and financing expected to close this month.
3. Investor Challenges and Timeline
Negotiations faced delays due to local zoning disputes and heightened lender scrutiny over lease terms backing the debt, resulting in reduced equity from Blackstone. After months of stop-and-start talks, final agreements were reached following adjustments to the township’s zoning approvals and bond structure.