Full Breakdown
Oracle Secures $16 B Financing for Michigan AI Data Center
4/28/2026, 12:46:05 AM
Core Event
Oracle, together with OpenAI, secured $16 billion to build a data-center campus in Saline Township, Michigan, dubbed “The Barn.” The site will host three single-story facilities with over one gigawatt of capacity; construction has begun, but no completion date is set.
Background
Campus follows September 2025 “Stargate” plan announced by OpenAI, Oracle and SoftBank to build five AI data centers nationwide.
Financial Structure & Scale
Equity from Related Digital and Blackstone (~$2 billion) is paired with $14 billion of fixed-rate bonds, about $10 billion of which PIMCO bought. The $16 billion package funds three data-center buildings, a battery-storage system, 750 acres of preserved land, and projected to create 2,500 construction jobs, 450 permanent onsite roles and 1,500 county-wide positions.
Official Statements & Responses
Jeff Blau (Related Digital) said the financing validates capabilities and the project’s role in America’s digital future. Nadeem Meghji (Blackstone) noted the “breathtaking” AI-driven infrastructure demand. Jim DeMare (Bank of America) highlighted strong investor demand for digital assets. Mahesh Thiagarajan (Oracle) called the Saline Township site a demonstration of urgency for next-generation AI infrastructure.
Criticism & Opposition
Local groups and Attorney General Dana Nessel have raised concerns about the projected one-gigawatt power draw, wetland loss, diesel generators and limited transparency in power contracts. The AG is appealing DTE’s power-approval, citing insufficient cost-impact data.
Conflicting Reports & Gaps
Sources differ on financing: some describe a $14 billion bond issue with $10 billion held by PIMCO, others cite a $16 billion total package that includes equity. Neither the project’s timeline nor DTE’s final power decision has been disclosed.
Verbatim Quotes
- “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, institutions who understand the scale, complexity, and long-term value of what we are delivering for our partners at Oracle and OpenAI.” — Jeff T. Blau, CEO & Chairman, Related Digital
- “Demand for digital infrastructure continues at a breath taking pace, driven by AI and the broader digitalization of the economy. This investment is another way we are capitalizing on this generational opportunity and helping provide much needed compute capacity to deliver this critical AI infrastructure.” — Nadeem Meghji, Global Head, Real Estate, Blackstone
- “Strong investor demand for high-quality digital infrastructure continues to drive significant capital formation, particularly for projects of this scale and complexity, our deep relationships with sponsor clients and investors, together with our expertise in structuring infrastructure finance transactions.” — Jim DeMare, Co-President, Bank of America
- “The rapid progress at our Saline Township data center underscores the urgency and scale of building America’s next-generation AI infrastructure,” — Mahesh Thiagarajan, EVP, Oracle Cloud Infrastructure
What’s Next
The campus awaits final environmental permits and a definitive DTE power-approval, both under legal review. Blackstone’s Digital Infrastructure Trust is weighing an IPO as construction proceeds toward delivering the gigawatt-scale AI compute capacity.
