Blackstone Explores debt financing for Oracle-Linked michigan data centre

Blackstone is exploring the possibility of providing debt financing for a major data centre in Saline Township, Michigan, which is set to be leased long-term to Oracle according to Bloomberg. The firm has previously participated as an equity investor and is now considering a larger financial role. The move comes as the project seeks a significant debt package, with Bank of America leading efforts to arrange approximately $14 billion in lending to support construction and early operations.

Financing Challenges and Strategic Considerations for Michigan Data Centre

The Michigan data centre is one of the largest technology infrastructure projects in the region, designed to host substantial computing capacity for Oracle. Long-term lease agreements provide predictable cash flows that can underpin large-scale debt commitments.

Blackstone’s potential involvement in the debt financing follows the withdrawal of a previously expected equity investor, leaving an opportunity for alternative financing solutions. By combining debt and equity, the project could attract additional institutional investors while balancing risk across partners.

Large-scale debt financing for data centres can be complex. Lenders weigh construction costs, long-term lease stability, and broader economic factors such as interest rates. In this case, the Oracle lease provides a degree of certainty, making debt participation more appealing to investors like Blackstone.

Technology Infrastructure Investment

The project reflects broader trends in U.S. technology infrastructure, where private capital is increasingly involved in funding data centres for cloud computing and AI workloads. Such developments require significant upfront investment and benefit from a mix of equity and debt financing to support long-term operations.

Blackstone has previously invested in infrastructure and data centre projects, positioning itself to provide both capital and operational insight. Expanding its role could strengthen its presence in the growing market for institutional backing of critical technology facilities.

Blackstone’s consideration of debt financing for Oracle’s Michigan data centre highlights evolving strategies in funding large-scale technology infrastructure. With Bank of America leading the debt arrangement and other investors stepping back, the project may rely on a mix of debt and equity to support construction and operations. Long-term lease commitments to

Oracle are central to securing financing, and deeper involvement by Blackstone would signal strong private-sector interest in next-generation data centres.