Apr 27, 2026 | Posted by Abdul-Rahman Oladimeji
Oracle has secured financing for its planned $16 billion data center project in Michigan, bringing months of negotiations to a close. To fund the development, Bank of America sold $14 billion in bonds tied to the project, with Pimco acquiring $10 billion, according to Bloomberg. The remaining portion was taken up by other investors. The bonds are set to mature in 2045 and carry a 7.5% coupon.
The total financing package for the Saline Township data center stands at $16 billion, including equity from Related Digital and funds linked to Blackstone Inc., which reportedly contributed $2 billion. The project was first confirmed in October 2025 and is expected to deliver around 1GW of capacity. Initially estimated to cost $10 billion to develop, the campus forms part of OpenAI’s Stargate initiative. Related Digital is leading development and has been targeting the site since August 2025.
"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."
"The rapid progress at our Saline Township data center underscores the urgency and scale of building America's next-generation AI infrastructure," said Mahesh Thiagarajan, executive vice president, Oracle Cloud 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."