Pimco is currently in discussions with Bank of America to arrange roughly $14 billion in debt financing for the construction of Oracle's massive data center facility in Michigan, according to individuals familiar with the matter.
Should the deal proceed, the bond giant would become a key financier for the campus in Salem Township, where Oracle will host infrastructure supporting OpenAI's applications. The financing is expected to be structured in bond form, with Pimco likely distributing portions of the debt to other investors. The sources requested anonymity due to the confidential nature of the negotiations.
Although talks with Pimco are still in early stages, its potential involvement marks a new development in the long-term financing effort for the project. The initiative has drawn significant attention from Wall Street and local communities, serving as a test of investor confidence in a data center of this scale.
Bank of America has spent several months arranging funding for project developer Related Digital. Blackstone is also planning to contribute an additional $2 billion in equity investment.
Representatives for Related Digital, Pimco, and Bank of America declined to comment. A spokesperson for Oracle expressed pride in the "rapid progress" made in financing and developing its Salem Township facility and noted ongoing collaboration with OpenAI, Related Digital, and Bank of America.
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