Oracle closed a $16.3 billion financing deal for a single data centre campus in Saline Township, Michigan — the largest single-facility technology debt package ever assembled. PIMCO anchored roughly $10 billion of the bond tranche after US banks retreated, citing doubts about AI infrastructure demand sustainability. The bonds carry a 7.5% coupon with a 19.5-year maturity and are secured against the Michigan campus itself, not Oracle's corporate balance sheet. This deal is part of $72 billion in total data centre partner debt Oracle has assembled across four states for the Stargate joint venture with OpenAI and SoftBank. Oracle's $553 billion in remaining performance obligations underpins the demand case, but concentration risk is high — a significant share traces back to OpenAI, which has never turned an annual profit. The deal reflects a broader trend of AI infrastructure being financed like real estate, with project-level debt secured against physical assets, as capital requirements have exceeded what corporate balance sheets alone can support.
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