Oracle-linked data center project in US bags an $18B loan
What's the story
A consortium of nearly 20 major banks has agreed to provide an $18 billion project finance loan for the construction of a data center campus in New Mexico, Bloomberg reported. The facility will be linked to tech giant Oracle. Leading this agreement are Sumitomo Mitsui Banking Corp, BNP Paribas SA, Goldman Sachs Group, and Mitsubishi UFJ Financial Group.
Investment strategy
Lead banks aim to broaden investor base
The four lead banks are looking to expand their investor base by bringing in other banks and institutional investors. This will be done through a retail syndication process, with commitments expected by the end of November. The move highlights how seriously tech giants are investing in infrastructure needed for artificial intelligence (AI).
AI infrastructure
Data center part of larger AI infrastructure project
The New Mexico data center isn't just another facility; it's a key part of the Stargate project. This $500 billion initiative is led by OpenAI, SoftBank Group, and Oracle to boost AI infrastructure across the US. The loan for this project has a four-year term with two one-year extension options and competitive pricing rates.