Data center developer Related Digital said on Friday it has secured financing for a $16 billion data center campus it is building in Michigan for Oracle
The financing includes equity from Related Digital and funds affiliated with Blackstone, as well as fixed-rate, long-term debt financing anchored by PIMCO-managed funds and accounts, the company said.
PIMCO bought about $10 billion of the bonds that priced Friday, while other investors bought the remainder of the debt, Bloomberg News reported, citing people familiar. PIMCO declined to comment to Reuters.
OpenAI, Oracle and Related Digital in October announced the project of more than 1 gigawatt data center in Saline Township, Michigan, as part of their push to expand U.S. AI infrastructure capacity. Construction started in February.
Big Tech companies have been pouring billions into building AI infrastructure. Alphabet, Amazon and Meta will collectively invest about $650 billion to scale up AI-related infrastructure this year, according to Bridgewater Associates.
Bank of America which was structuring agent and financial advisor in the deal, sold $14 billion of bonds, while Blackstone’s equity contribution was at around $2 billion, Bloomberg News said.
