Oracle close to finalizing financing for Michigan data center

Oracle is close to finalizing about $16 billion in financing for a Michigan data center developed by Related Digital; the package is expected to be a mix of equity and debt.

Blackstone is reportedly contributing roughly $2 billion, with Bank of America leading the remaining debt financing; some funding may be raised through bonds.

Oracle will lease the completed facility; lease payments are to serve as collateral and lenders have raised concerns about lease terms and payments if the site is underutilized.

Saline Township initially rejected the project over energy and environmental concerns, but a zoning agreement allowed talks to resume; projected electricity demand exceeded that of some power plants.

Financing costs have risen; Oracle is rapidly building AI infrastructure while operating with negative free cash flow.