Related Digital, a data center developer, announced on Friday that it has obtained funding for a $16 billion data center campus it is constructing for Oracle in Michigan.
The company stated that the funding consists of fixed-rate, long-term debt financing anchored by PIMCO-managed funds and accounts, as well as equity from Related Digital and funds connected to Blackstone.
PIMCO purchased roughly $10 billion of the bonds that priced on Friday, while other investors purchased the remaining debt. PIMCO declined to comment.
As part of their efforts to increase the capacity of AI infrastructure in the United States, OpenAI, Oracle, and Related Digital announced in October that they would build more than one gigawatt data center in Saline Township, Michigan.
In February, construction got underway.
Large IT firms have been investing billions to develop AI infrastructure.
Bridgewater Associates said that Alphabet, Amazon, and Meta will all invest over $650 billion to expand AI-related infrastructure this year.
Blackstone contributed about $2 billion in equity, while Bank of America, the deal’s structuring agent and financial advisor, sold $14 billion in bonds.
