Oracle Secures $16 Billion Financing for Michigan AI Data Center, Pimco Leads Bond Purchase
April 27, 2026
Oracle Secures $16 Billion Financing for Michigan AI Data Center, Pimco Leads Bond Purchase
Oracle has finalized a $16 billion financing package for its massive data center campus in Saline Township, Michigan, marking one of the largest single-project funding rounds in the data center industry. The deal, which includes $14 billion in bonds and $2 billion in equity, resolves months of negotiations and clears the way for full-scale construction of a 1-gigawatt facility that will support OpenAI's Stargate initiative.
Bank of America led the debt sale, issuing $14 billion in bonds tied to the project, with Pacific Investment Management Co. (Pimco) acquiring $10 billion of that total. The remaining $4 billion in bonds were taken up by other institutional investors, according to Bloomberg. The bonds mature in 2045 and carry a 7.5 percent coupon. On the equity side, Related Digital and funds associated with Blackstone Inc. contributed $2 billion to complete the $16 billion capital stack.
The Saline Township project, first confirmed in October 2025, is expected to cost approximately $10 billion to develop and deliver up to 1 gigawatt of capacity. The campus is being developed by Related Digital, which had been targeting the site since August 2025, and is a key component of OpenAI's Stargate project, a multi-billion-dollar AI infrastructure initiative.
"The strength of this financing is a powerful validation of what we have built at Related Digital and of the critical role this project will play in America's digital future," said Jeff T. Blau, CEO of Related Companies and chairman of Related Digital. "We are grateful for the confidence of Blackstone, Pimco, and our world-class banking partners, institutions who understand the scale, complexity, and long-term value of what we are delivering for our partners at Oracle and OpenAI." Blau added that "major construction is well underway in Saline Township."
DTE Energy has signed on to provide 100 percent of the data center's power, including a battery storage project funded by Oracle. The utility partnership underscores the growing emphasis on renewable and reliable energy sourcing for hyperscale AI workloads. Oracle Cloud Infrastructure executive vice president Mahesh Thiagarajan framed the project as a broader economic catalyst: "The rapid progress at our Saline Township data center underscores the urgency and scale of building America's next-generation AI infrastructure. Together with our partners, we are not just building a data center – we are creating high-quality jobs, investing in the communities in which we operate, and driving long-term economic growth. This project reflects our deep commitment to Michigan and to powering the future of AI in the United States."
The deal highlights a significant shift in how hyperscale data center projects are financed, with large institutional investors like Pimco and Blackstone increasingly stepping in to fund multi-billion-dollar AI infrastructure. Pimco, an American investment management firm owned by Allianz Group, has been expanding its data center footprint; it launched a European data center platform called Apto in 2023 and recently teamed up with Blue Owl to help Meta access financing for its planned Hyperion data center. The involvement of such heavyweight financiers signals that the market views AI-driven data center demand as a long-term, capital-intensive opportunity with stable returns, even as construction costs and power requirements continue to escalate.
Source: datacenterdynamics
