Related Digital secures funding for $16 Billion Oracle Data Center Project in Michigan

Data center developer Related Digital announced it secured funding for a $16 billion data center campus in Saline Township, Michigan for Oracle.  

The financing includes equity from Related Digital and funds affiliated with Blackstone, and fixed-rate, long term debt financing anchored by PIMCO-managed funds and accounts. Bank of America served as structuring agent and financial advisor, with Goldman Sachs and Wells Fargo also serving as advisors to Related Digital.

This project will deliver significant community benefits, including:

·         2,500+ union construction jobs, 450+ jobs onsite, and 1,500+ jobs county-wide

·         Millions in new, annual tax revenues to support the Township, Washtenaw County and Michigan schools

·         $14 million in direct benefits for the local fire department and community investment

·         Utilizing a closed-loop system that protects Michigan's water

·         Preservation of 750+acres of open space, farmland and wetlands

"The strength of this financing is a powerful validation of what we have built at Related Digital and of the critical role this project will play in America's digital future," said Jeff T. Blau, CEO of Related Companies and Chairman of Related Digital. "We are grateful for the confidence of Blackstone, PIMCO, and our world class banking partners, institutions who understand the scale, complexity, and long-term value of what we are delivering for our partners at Oracle and OpenAI. I also want to extend my thanks to Governor Gretchen Whitmer, whose commitment to ensuring Michigan competes in the innovation economy in a responsible and forward-thinking way has made this possible. Major construction is well underway in Saline Township, momentum is strong, and we are laser focused on executing with the same discipline that has defined Related for more than 50 years."

DTE Energy is supplying 100% of the project's power using existing resources augmented by a new battery storage investment financed entirely by Oracle. As a result, this project is expected to create $300 million in savings for DTE's existing customers thanks to the project's contribution towards the fixed costs of grid maintenance and improvements.

The project is being developed for Oracle as part of its partnership with OpenAI to expand AI compute capacity across the country. The campus utilizes a closed-loop cooling system for cooling and will be LEED certified. Construction on the first data center buildings is underway and the project is on schedule for delivery to Oracle. The multi-billion-dollar investment positions Michigan as a cornerstone of America's AI infrastructure buildout.

The closing of the financing is subject to the satisfaction of customary closing conditions.