Oracle says Blue Owl won't fund its USD10b Michigan data centre
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The news: Oracle Corp said Blue Owl Capital will not be part of the equity financing for its planned USD10 billion ($15.1 billion) data centre project in Michigan, as negotiations on the deal move into final stages.
Oracle told media in a statement that its development partner, Related Digital, selected “the best equity partner from a competitive group of options”, which did not include Blue Owl, after a competitive process.
The context: The comments followed a Financial Times report citing people familiar with the matter saying funding talks with Blue Owl for the 1 gigawatt facility in Saline Township, Michigan, had stalled and would not proceed.
The FT reported Blue Owl had been in discussions with lenders and Oracle about backing the project, which is being built to serve OpenAI. Concerns, however, included tougher leasing and debt terms and the risk of delays at the site being developed by Related Digital.
Oracle shares fell as much as 6% in New York trading on Wednesday and have declined by about 40% over the past three months.
The FT reported Blackstone has held talks to step in as a financial partner but has not signed a deal. Related Digital said in a statement the project drew significant interest from equity partners and it selected its preferred partner, but didn’t name the investor.
The sources: Bloomberg, The Financial Times
