Banks are preparing to launch a $38 billion debt offering to finance data centers tied to Oracle Corp., marking what could be the largest financing deal for artificial intelligence infrastructure to date, Bloomberg reported.
The offering is split across two senior secured credit facilities: a $23.25 billion package for a data center in Texas and a $14.75 billion facility for a project in Wisconsin. Both facilities are expected to mature in four years, with two one-year extension options, and price around 2.5 percentage points over the benchmark.
JPMorgan Chase & Co. and Mitsubishi UFJ Financial Group are among the banks leading the deal, while Wells Fargo, BNP Paribas, Goldman Sachs, Sumitomo Mitsui Banking Corp., and Societe Generale have been allocated portions of the financing following a second round of underwriting, Bloomberg reported. Representatives for JPMorgan, MUFG, SMBC, and OpenAI declined to comment. Oracle, Vantage Data Centers, and other banks did not immediately respond to requests for comment.
The projects, developed by Vantage Data Centers, are set to support Oracle’s work with OpenAI under the broader $500 billion Stargate initiative aimed at expanding AI infrastructure. Both facilities will be structured as interest-only during construction, transitioning to amortization once operations begin, according to sources familiar with the matter.
Investors have been seeking exposure to AI for months, with banks and private credit firms competing to lead massive debt packages. Bloomberg noted that this Vantage financing comes shortly after Meta Platforms selected Pacific Investment Management and Blue Owl Capital to lead a $29 billion debt and equity package for its own data-center expansion in Louisiana, where bond trading has already yielded significant secondary-market gains.
The Oracle-linked offering highlights the growing appetite for financing large-scale AI infrastructure projects as technology companies accelerate investments in generative AI and cloud computing capabilities.
