Catenaa, Saturday, April 25, 2026- A $16 billion financing for a massive Oracle data center in Michigan has wrapped up after months of stop-and-start negotiations with investors.
Bank of America sold $14 billion of bonds tied to the project, in a debt sale that was anchored by Pacific Investment Management, according to a statement by the data center developer Related Digital.
Pimco bought about $10 billion of the bonds that priced Friday, while other investors bought the remainder of the debt, according to people with knowledge of the matter, who asked not to be identified because they’re not authorized to speak publicly.
The debt is part of a larger $16 billion financing package that will fund the data center in Saline Township in southeastern Michigan. Oracle is the tenant and aims to use the campus to power applications for OpenAI, Bloomberg has reported.
The financing includes equity from Related Digital and funds affiliated with Blackstone. The latter contributed about $2 billion of the equity, Bloomberg previously reported.
The bonds were sold privately in a 144A offering, meaning they can only be bought by large institutional investors, Bloomberg said.
The notes, which mature in 2045, were priced at 98.75 cents on the dollar and carry a 7.5% coupon, according to Bloomberg-compiled data.
The protracted process involving the project in Michigan’s Saline Township shows how Big Tech’s debt-fueled AI splurge is running into more intense scrutiny from Wall Street.
The financing follows other massive debt packages that banks assembled for Oracle data centers: a $38 billion debt deal to build facilities in Texas and Wisconsin, and $18 billion for a New Mexico site.
DTE Energy is supplying power to the project, while Oracle is financing a new battery storage investment, according to the statement.
The Saline Township campus will include three single-story data center buildings with more than a gigawatt of capacity. The project is being developed for Oracle as part of its partnership with OpenAI to expand AI compute capacity across the country.
The biggest technology companies are pouring hundreds of billions of dollars into data centers and other infrastructure as they bet artificial intelligence will reshape large parts of the economy.
Much of that money is coming from debt markets. Since last year, at least $290 billion of debt financing has been arranged for hyperscaler projects.
Oracle has become one of the largest high-grade corporate bond issuers in the US, with about $120 billion of notes in the main US corporate bond index. In early February, it sold $25 billion of bonds.
