Related Digital nears $16 billion financing for Oracle data center, source says
April 1 (Reuters) – Data center developer Related Digital is closing in on $16 billion of financing for an Oracle (ORCL.N), data center in Michigan, a source familiar with the matter said on Wednesday.
- OpenAI, Oracle and Related Digital in October announced that they are building a data center campus of more than 1 gigawatt in Saline Township, Michigan, as part of their Stargate push to expand U.S. AI infrastructure capacity.
- Big Tech companies have been pouring billions into building AI infrastructure, driven by the pursuit of technology capable of matching or surpassing human intelligence.
- Full construction in Saline Township commenced in February and financing is expected to be finalized shortly, Related Digital said in a statement.
- “We are proud of the rapid progress that’s been made both in financing and developing our data center in Saline Township, Michigan,” an Oracle spokesperson said in a statement.
- Oracle has hit a major milestone with the vertical construction of the campus now underway, the spokesperson said, adding that the effort is moving forward on time and according to plan.
- Blackstone’s (BX.N), equity contribution is projected to be nearly $2 billion, amounting to about half of what was initially under consideration, according to Bloomberg News, which reported the development earlier.
- Bank of America (BAC.N), is leading an additional $14 billion in debt financing that was originally intended as a construction loan but is now expected to be structured as a bond offering, Bloomberg News said.
- BofA declined to comment, while Blackstone did not immediately respond when contacted by Reuters.
Reporting by Juby Babu in Mexico City; Editing by Maju Samuel and Leroy Leo
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Related Digital nears $16 billion financing for Oracle data center, source says, source
