SoftBank, JPMorgan back massive $38B data center push in the US
Stargate LLC, a joint venture created by OpenAI, SoftBank, Oracle and investment firm MGX, was part of a syndication led by JPMorgan Chase and Mitsubishi UFJ Financial Group that extended roughly $38 billion of debt for two Stargate campuses.
The goal? Build huge new data centers in Texas and Wisconsin, aiming for a whopping 10 gigawatts of capacity. The total project cost is expected to hit $500 billion.
Who's involved and how it's funded
SoftBank is leading the charge with Masayoshi Son at the helm, while Oracle handles infrastructure. Partners like MGX, Microsoft, NVIDIA, and ARM are also on board.
Funding highlights include a $10 billion package expected to be borrowed from Mizuho and other lenders (date not given in the source), $2.3 billion from JPMorgan for an Abilene site (date not given in the source), plus another $18 billion set aside for New Mexico.
Not all smooth sailing
Getting this much money together hasn't been easy—JPMorgan is seeing slow investor interest due to concerns about Oracle's credit risks and banks' exposure limits.
Bank of America is leading a syndication to finance a Michigan facility, and the effort has attracted interest from syndication takers.