Related Digital Nears $16 Billion Financing for Major Oracle AI Data Center in Michigan
April 2, 2026
In a significant move for the AI infrastructure sector, data center investor Related Digital is finalizing approximately $16 billion in financing for a major data center project in Michigan, reportedly intended for Oracle's use. This development underscores the immense capital requirements and strategic partnerships driving the expansion of computing capacity for artificial intelligence workloads.
According to a Reuters report citing sources familiar with the negotiations, the financing is likely for Oracle's long-planned campus in Saline Township, Michigan. Related Digital, an arm of the real estate investment firm Related Companies, has been a key development partner for Oracle and OpenAI at this site. The project's valuation was reported at $10 billion last year. An Oracle spokesperson confirmed a major milestone has been reached, with vertical construction now underway.
The financing package is complex and has evolved. Investment firm Blackstone has reportedly contributed nearly $2 billion to the project, though this figure is below initial expectations. Furthermore, Bloomberg reported that an additional $14 billion in debt financing, initially structured as a construction loan from Bank of America, is now expected to involve a bond issuance. This massive funding effort follows earlier challenges; last December, investor Blue Owl Capital withdrew from funding discussions, and reports indicated Oracle faced difficulties securing backing for its AI commitments from banks and investors.
To redirect resources toward its ambitious AI data center spending, Oracle has initiated significant workforce reductions. Investment firm TD Cowen had previously speculated that Oracle might cut 20,000 to 30,000 jobs to free up $8-$10 billion in cash. Internal company emails later revealed Oracle has begun laying off thousands of employees, following a smaller round of cuts in August and September 2025.
The Saline Township campus is closely linked to OpenAI's "Stargate" project, with Related Digital stating last October it was developing the facility exclusively for Oracle as part of that initiative. While the project faced local opposition resulting in a lawsuit, that matter has since been settled.
The scale of this financing highlights the capital-intensive nature of building AI-ready data centers. Related Companies, the parent firm, oversees more than $70 billion in assets across various sectors. Related Digital's own pipeline is substantial, including a 64MW project in Ontario, Canada; multiple gigawatt-scale campuses in Illinois and Missouri spanning hundreds of acres; and a 250MW campus in Wyoming.
Source: datacenterdynamics
