Related Digital Secures Financing for Oracle Data Center

Reuters reports that Related Digital has secured financing for a $16 billion data center campus in Saline Township, Michigan being built for Oracle. Citing Bloomberg, Reuters reports PIMCO bought about $10 billion of the bonds that priced, while Bank of America, the deal's structuring agent and financial adviser, sold $14 billion of bonds in total, and Blackstone contributed roughly $2 billion of equity. Related Digital's own announcement, distributed via PR Newswire, confirms the financing close. Reuters notes the project was announced in October by OpenAI, Oracle, and Related Digital and that construction began in February; multiple outlets describe the site as a more-than-1 gigawatt campus.

Gigawatt-class AI campuses require multi-source power agreements, high-voltage transmission upgrades, and dedicated substation work well beyond what a typical enterprise data center needs, which is a major driver of both the capital intensity and the financing complexity seen here. These sites are generally built to sustain high-utilization training and large-scale inference workloads, which drives different design choices for power distribution, cooling, and fiber connectivity than standard colocation facilities.

The Financial Times reports that some investors pushed for higher yield on the bond offering, citing concerns over Oracle's overall debt load and a broader flood of recent AI-related debt issuance - a sign that credit markets are starting to price AI-infrastructure risk more cautiously even as demand for the underlying capacity stays strong. Crain's Detroit Business reports the campus, near Ann Arbor, is intended to power applications for OpenAI through Oracle's cloud contracts.

The deal is a concrete data point for teams tracking where new large-scale training and inference capacity is coming from: a single, newly financed Michigan site adds contiguous gigawatt-class capacity that Oracle can allocate to OpenAI workloads. The financing mix - fixed-rate bonds plus a large equity slice from Blackstone - is also a template other developers and hyperscalers are likely to study as they look to fund similarly sized AI campuses without fully loading the cost onto a single company's balance sheet.

Whether the FT-reported investor pushback on yield spreads to other AI-infrastructure bond deals as issuance volume grows; permitting and interconnection milestones that typically govern when large campuses can actually power on; and any disclosed procurement or capacity-allocation terms between Oracle, OpenAI, and Related Digital once the site nears operation.