Blackstone and Related Digital Secure $16 Billion Financing for Oracle AI Data Center Campus in Michigan
April 26, 2026
Blackstone and Related Digital Secure $16 Billion Financing for Oracle AI Data Center Campus in Michigan
The race to build artificial intelligence infrastructure is entering a new phase, where securing capital is only half the battle. Blackstone Inc. and Related Digital have locked down $16 billion in financing for Oracle’s massive AI data center campus in Saline Township, Michigan, marking one of the largest private capital commitments to U.S. AI infrastructure to date. However, as power constraints and local opposition intensify, the hardest part of bringing the project online may still lie ahead.
The financing structure combines equity from Related Digital and Blackstone-linked funds with fixed-rate, long-term debt provided by funds managed by PIMCO, a global investment manager. According to Reuters, PIMCO snapped up roughly $10 billion in bonds priced on Friday, while Bank of America offloaded $14 billion in bonds and Blackstone contributed around $2 billion in equity. Bank of America also served as structuring agent and financial adviser, with Goldman Sachs and Wells Fargo advising Related Digital. The deal underscores how asset managers like Blackstone are deepening their bets on physical assets tied to the AI boom, from data centers to power infrastructure.
The Oracle campus, closely tied to the company’s partnership with OpenAI, is designed to house three single-story data center buildings with a total capacity exceeding one gigawatt—equivalent to 1,000 megawatts. That scale makes securing reliable and affordable electricity a core financial and operational challenge. Nadeem Meghji, who leads Blackstone Real Estate globally, described demand for digital infrastructure as moving at “a breathtaking pace,” fueled by AI and the ongoing digital shift. Blackstone expects the project to generate over 2,500 union construction jobs, more than 450 onsite positions, and upwards of 1,500 additional jobs across the county.
Blackstone is expanding its AI-infrastructure footprint beyond this single project. Just this month, the Blackstone Digital Infrastructure Trust filed a registration statement for a planned IPO aimed at holding stabilized, recently constructed data centers. If it proceeds, the trust is expected to trade on the New York Stock Exchange under the ticker BXDC. The move reflects a broader trend: private equity is now making data centers a core investment bet, not a peripheral play. Bain Capital is reportedly looking to offload at least 40% of Bridge Data Centres, targeting a $5 billion valuation for the Singapore-based firm, while a KKR-Singtel consortium struck a $5.2 billion deal in February for full ownership of ST Telemedia Global Data Centres.
Despite the financial firepower, the project faces mounting headwinds. According to Michigan Public, critics of the Saline Township development are pushing back over environmental concerns, energy usage, and a lack of transparency. Michigan Attorney General Dana Nessel has challenged DTE Energy contracts linked to the facility, arguing that heavily redacted filings fail to substantiate claims about what customers will ultimately pay. Resistance is gaining momentum nationally: Reuters reported that Maine’s governor recently shot down a bill that would have imposed the nation’s first state-level freeze on large new data centers. Roughly a dozen states are now weighing restrictions tied to power consumption, costs, air quality, and water use, raising the risk that political complications could slow or stall even well-funded projects.
Blackstone’s financial performance reflects both the opportunities and pressures in this space. The firm posted a 25% jump in distributable earnings for the first quarter, reaching $1.76 billion, or $1.36 per share. Its credit and insurance business attracted $37 billion in new money, while private equity raised $20.4 billion. However, Blackstone’s main private credit vehicle, BCRED, saw $3.7 billion pulled out in Q1, producing net outflows. On the analyst call, CEO Stephen Schwarzman insisted that institutional and insurance clients continued to deploy significant capital “despite the external noise.” Blackstone shares slipped 0.56% to close at $121.65 on Friday, as investors weigh concerns over private credit stress against the scale of the AI infrastructure trade.
Source: ts2.tech
