Data centre developer Related Digital announced Friday it has secured a comprehensive financing package for a massive $16 billion data centre campus it is constructing in Michigan for Oracle. Related Digital is a company focused on developing infrastructure for data processing and storage. The firm is currently building this significant data centre campus in Michigan. This colossal project, located in Saline Township, Michigan, will boast a capacity exceeding 1 gigawatt and is designed to expand the United States’ artificial intelligence infrastructure capacity. Construction on the campus began in February, following its initial announcement in October by OpenAI, Oracle, and Related Digital.
The financing framework includes equity contributions from Related Digital and funds associated with Blackstone. Complementing this equity is fixed-rate, long-term debt financing, primarily anchored by funds and accounts managed by PIMCO. Bloomberg News reported that PIMCO acquired approximately $10 billion of the bonds, which were priced on Friday, with other investors purchasing the remaining debt. Bank of America served as the structuring agent and financial advisor for the deal, successfully selling $14 billion worth of bonds. Blackstone’s equity contribution to the project was reportedly around $2 billion.
This substantial investment underscores the escalating global trend of major technology companies pouring billions into developing robust AI infrastructure. Giants like Alphabet, Amazon, and Meta are collectively projected to invest approximately $650 billion this year alone to scale up their AI-related infrastructure, according to estimates from Bridgewater Associates. The Michigan data centre campus is a testament to this vigorous push, solidifying the nation’s capabilities in advanced computing and artificial intelligence.
