Related Digital nears $16 billion financing for Oracle data center

Data center developer Related Digital is closing in ​on $16 billion of financing for an Oracle data center in ‌Michigan.

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 ​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 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. Reuters