Oracle Secures $16 Billion Financing for Data Center Expansion — Major Milestone Achieved

Related Digital is finalizing $16 billion in financing for a major Oracle Corp. Data center in Michigan, according to Bloomberg News and confirmed by multiple financial news outlets. The funding package includes approximately $2 billion in equity from institutional investors and $14 billion in structured debt, marking one of the largest data center financings in U.S. History.

The project, located in Saline Township, is designed to support Oracle Cloud Infrastructure and artificial intelligence workloads for OpenAI. Once completed, the campus is expected to deliver more than 1 gigawatt of AI compute power, positioning it among the largest AI-focused data centers in the United States.

Construction has already begun, with initial steel structures in place on the 250-acre site. The development will feature multiple buildings, each approximately 550,000 square feet, incorporating LEED-certified design, energy-efficient systems, closed-loop cooling, and environmentally sensitive land management practices.

Upon completion, the data center is projected to create 2,500 construction jobs, 450 permanent on-site positions, and an additional 1,500 roles in the surrounding economy. The financing is expected to close as soon as this month, following months of negotiations with investors.

Blackstone Inc.’s equity investment in the project will be less than initially anticipated, amounting to roughly $2 billion, according to sources familiar with the matter. Bank of America Corp. Is leading the $14 billion debt financing, which was originally structured as a construction loan but is now expected to involve a bond issuance.

Oracle will lease the completed facility, with lease payments backing the debt provided to an entity created specifically to fund the construction. This structure keeps the debt off Oracle’s balance sheet while allowing the company to expand its cloud and AI infrastructure capacity.

“We are proud of the rapid progress that’s been made both in financing and developing our data center,” Oracle said in a statement regarding the Michigan deal. The company confirmed that financing will be completed shortly, the project remains on schedule, and the first steel columns have already been installed.

Related Digital, a venture of New York-based Related Cos., echoed the progress in a separate statement, noting that the financing milestone brings the project closer to completion. The development follows other large-scale Oracle-backed data center financings, including a $38 billion deal for facilities in Texas and Wisconsin and an $18 billion package for a site in New Mexico.

Analysts note that the scale and complexity of the Michigan financing reflect both the growing computational demands of the AI sector and the increasing sophistication required to fund giga-scale technology infrastructure. The project represents a significant test of investor sentiment toward Oracle’s AI-related spending and the use of special-purpose entities to manage large off-balance-sheet commitments.