Financing has been completed for a US$ 16 billion Oracle data center campus in Saline Township, Michigan, being developed by Related Digital, a privately-owned real estate development, and Blackstone, the world’s largest alternative asset manager. The campus, referred to as “The Barn,” is named after a preserved red barn at the entrance along Michigan Avenue.
The facility includes three single-story data center buildings with more than one gigawatt of planned capacity. It is being developed for Oracle as part of its work with OpenAI to expand computing infrastructure for AI workloads. According to a press release, the deal includes equity from Related Digital and Blackstone-affiliated funds, along with fixed-rate, long-term debt backed by PIMCO-managed funds and accounts, a global leader in active fixed income. Bank of America acted as structuring agent and financial advisor while Goldman Sachs and Wells Fargo advised Related Digital.
Jeff T. Blau, CEO and Chairman, Related Digital, said, “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, institutions who understand the scale, complexity, and long-term value of what we are delivering for our partners at Oracle and OpenAI.”
Nadeem Meghji, Global Head, Blackstone Real Estate, said, “Demand for digital infrastructure continues at a breath taking pace, driven by AI and the broader digitalization of the economy. This investment is another way we are capitalizing on this generational opportunity and helping provide much needed compute capacity to deliver this critical AI infrastructure.”
Jim DeMare, Co-President, Bank of America, said, “Strong investor demand for high-quality digital infrastructure continues to drive significant capital formation, particularly for projects of this scale and complexity, our deep relationships with sponsor clients and investors, together with our expertise in structuring infrastructure finance transactions.”
DTE Energy is supplying electricity to the site using existing generation resources, supplemented by a battery storage project financed by Oracle. The setup is expected to reduce costs for DTE customers by US$ 300 million through contributions to grid maintenance and upgrades.
The design includes a closed-loop cooling system and is expected to receive LEED certification. Construction on the first buildings is already underway, with delivery to Oracle planned on schedule. The project is positioned as part of a broader expansion of AI infrastructure capacity in the United States.