TLDRs;
- Oracle secures $38B financing to expand AI-focused data centers in Texas and Wisconsin.
- JPMorgan, Goldman Sachs, and global banks lead largest AI infrastructure debt deal.
- Financing structured with interest-only construction phase, switching to amortization after operations.
- Vantage Data Centers builds sites supporting OpenAI, with grid access a key factor.
Oracle Corporation (NYSE: ORCL) saw its shares climb alsomst 35% Thursday before extending Friday following the announcement of a historic $38 billion debt package aimed at funding new data centers in Texas and Wisconsin.
The facilities, developed by Vantage Data Centers, are intended to support OpenAI workloads, positioning Oracle at the forefront of enterprise AI infrastructure.
The financing is being led by a consortium of major global banks, including JPMorgan Chase, Goldman Sachs, Wells Fargo, Mitsubishi UFJ Financial Group, BNP Paribas, Sumitomo Mitsui Banking, and Societe Generale. This marks the largest debt deal for AI infrastructure in history, surpassing Meta’s $29 billion Louisiana data center financing.
Debt Structure Eases Initial Burden
The $38 billion package is divided into two senior secured credit facilities: $23.3 billion for the Texas campus and $14.8 billion for Wisconsin.
Both loans have four-year maturities with options to extend for two additional years. Interest-only payments are scheduled during construction, with principal amortization beginning once operations commence.
Financial analysts note that this structure allows Oracle and Vantage Data Centers to focus on timely construction without immediate repayment pressures, although the transition to amortization will require precise operational execution. Any delay in grid access or infrastructure commissioning could create tight timelines for loan repayment.
Utility Partnerships Key to Operations
Vantage is coordinating with local utilities to ensure reliable power delivery. In Wisconsin, We Energies is expected to provide 1.3 GW by late 2027, with the campus potentially reaching 3.5 GW, nearly 43% of the utility’s current capacity.
The utility is also planning 4.3 GW of renewable energy plus 2 GW of natural gas projects, with updates due in fall 2025. A special rate has been proposed to protect other customers from the costs of data center expansion.
In Texas, access to the Electric Reliability Council of Texas (ERCOT) grid is critical for the Frontier campus. Timely connection to substations, transformers, and power purchase agreements will be essential to meet operational deadlines and avoid delays that could affect loan amortization schedules.
Construction and Technology Opportunities
Civil and electrical infrastructure work is already underway. Wisconsin’s campus includes substations, emergency power systems, water towers, and feeders, with Vantage advancing $175 million upfront to be reimbursed through Tax Incremental Financing (TIF) in Port Washington.
Texas builds, labeled TX21, TX22, and TX12, continue through August 2027, providing a window for vendors and contractors to participate in high-voltage gear, liquid cooling, and civil works.
Energy technology suppliers, as well as engineering, procurement, and construction (EPC) firms, have opportunities to monitor permits, bid processes, and supply chains to support Oracle’s ambitious AI expansion. Analysts expect these projects to further strengthen Oracle’s positioning in enterprise AI while signaling confidence to investors.
Market Impact and Investor Outlook
Oracle shares rose nearly 1% on the NYSE following news of the financing deal, reflecting investor optimism about the company’s ability to scale AI infrastructure and capitalize on the growing demand for cloud-based AI services.
The successful execution of these projects will not only bolster Oracle’s market position but also reinforce its role in powering next-generation AI applications for enterprises and developers alike.
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