Oracle Nears Record $38 Billion Debt Financing for AI Data Center Expansion

Massive Debt Financing for AI Infrastructure

Oracle is reportedly close to finalizing a $38 billion debt offering to fund its expanding data center operations in Texas and Wisconsin, according to sources familiar with the matter. The financing package, which would be the largest debt arrangement associated with AI infrastructure to date, signals Oracle’s aggressive push into the competitive cloud and artificial intelligence markets.

Massive Debt Financing for AI Infrastructure
Financing Structure and Project Allocation
Texas Campus Specifications and Timeline
Wisconsin Project Details
Broader Context and Future Financing Needs

Financing Structure and Project Allocation

According to reports from Bloomberg, the debt funding will be divided into two separate packages: a $23.25 billion offering designated for the Texas data center campus and a $14.75 billion portion allocated to the Wisconsin project. Sources indicate that the debt offering could be finalized as early as next week, though the companies involved have not officially confirmed the arrangement.

Banking giants JPMorgan Chase & Co. and Mitsubishi UFJ Financial Group are reportedly leading the financing deal, with additional participation from Wells Fargo & Co., BNP Paribas SA, Goldman Sachs Group Inc., Sumitomo Mitsui Banking Corp., and Société Générale SA. Multiple institutions approached for comment declined to provide details, while Oracle and data center developer Vantage Data Centers have yet to respond to inquiries.

Texas Campus Specifications and Timeline

The Texas data center project, announced in August, represents one of the most ambitious infrastructure developments in the industry. Located in Shackelford County, the campus is planned to eventually reach 1.4 gigawatts of capacity across 10 data centers totaling approximately 3.7 million square feet.

Construction has already commenced on the massive complex, with the first building scheduled for completion in the second half of 2026. The remaining facilities are expected to be operational by the end of 2028. Previous reports had indicated that JPMorgan and MUFG were nearing a $22 billion raise for the Texas facility alone, which is estimated to require a total investment of $25 billion.

Wisconsin Project Details

The Wisconsin data center campus, revealed just this week, will be situated in Port Washington and is projected to provide nearly one gigawatt of capacity distributed across four facilities. Both the Texas and Wisconsin developments are being constructed by Vantage Data Centers and will be utilized by Oracle as part of its “Stargate” collaboration with OpenAI.

Broader Context and Future Financing Needs

This record debt offering follows Oracle’s recent $18 billion debt financing in late September to support its extensive data center expansion strategy. The consecutive massive financings highlight the enormous capital requirements of modern AI infrastructure development.

Analysts suggest that Oracle may need to secure up to $100 billion in additional debt funding over the next four years to fully support its OpenAI partnership obligations alone. The scale of these investments underscores the intensifying competition among cloud providers to establish dominance in the artificial intelligence infrastructure space.

Industry observers note that while the $38 billion package would represent the largest AI infrastructure financing to date, it likely marks just the beginning of substantial capital deployments as AI workloads continue to grow exponentially and require increasingly sophisticated computing resources.

References

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