Oracle Secures $16 Billion Financing for 1GW Michigan Data Center Campus
Oracle secured $16 billion in financing for its Saline Township, Michigan data center, with Bank of America arranging $14 billion in bonds and Pimco buying $10 billion. The campus dubbed 'The Barn' will add over 1 gigawatt capacity, use closed-loop cooling and deliver energy cost savings while creating 2,500 construction jobs.
1. Financing Structure
Oracle's Saline Township campus raised $16 billion in capital: Bank of America structured $14 billion in long-term bonds with a 7.5% coupon priced at 98.75, maturing in 2045, of which Pimco purchased $10 billion. Blackstone and Related Digital contributed roughly $2 billion in equity, while Goldman Sachs and Wells Fargo served as advisors.
2. Campus Design and Operations
The data center campus spans three single-story buildings delivering over 1 gigawatt of power capacity, utilizes a closed-loop cooling system and aims for LEED certification. DTE Energy will supply 100% of power supplemented by a new Oracle-financed battery storage project projected to save $300 million.
3. Economic Impact and Community Response
The project is expected to create more than 2,500 union construction jobs and over 450 permanent positions, generate millions in annual tax revenues and direct $14 million to local community services. Some residents have expressed concerns about grid strain and environmental effects despite the closed-loop design and preserved open space.