TLDR
- Banks led by JPMorgan and MUFG are preparing a $38 billion debt deal to fund two Oracle-linked data centers, marking the largest AI infrastructure financing on record
- The financing splits into $23.25 billion for a Texas project and $14.75 billion for a Wisconsin facility, both developed by Vantage Data Centers
- The data centers are part of Oracle’s $500 billion “Stargate” initiative with OpenAI to expand AI infrastructure
- AI and HPC mining stocks rallied on the news, with Cipher Mining and IREN up 7% and Bitfarms jumping 12% in pre-market trading
- The four-year loans will price about 2.5 percentage points above benchmark rates, with two one-year extension options available
Banks are preparing to launch a $38 billion debt deal to finance two data centers linked to Oracle Corp. The financing represents the largest deal for AI infrastructure to date.
Banks are preparing to launch a $38 billion debt offering as soon as Monday that will help fund data centers tied to Oracle in what would be the largest such deal for AI infrastructure to come to market https://t.co/BG8h7mq1VG
— Bloomberg (@business) October 23, 2025
JPMorgan Chase and Mitsubishi UFJ Financial Group are leading the transaction. The deal divides into two senior secured credit facilities.
A $23.25 billion package will fund a data center in Texas. Another $14.75 billion facility will support a project in Wisconsin.
Vantage Data Centers is building both facilities. Oracle will use them to host OpenAI services.
The projects form part of Oracle’s larger Stargate initiative. The company plans to invest $500 billion in AI infrastructure alongside OpenAI.
Wells Fargo, BNP Paribas, Goldman Sachs, Sumitomo Mitsui Banking Corp, and Societe Generale received portions of the financing package. This came after the first round of selecting underwriters.
Market Response to Infrastructure Deal
AI and High Performance Computer mining stocks rallied in pre-market trading on the news. Cipher Mining and IREN both gained 7%.
Bitfarms saw the biggest jump at 12%. The gains reversed recent losses after a sector-wide correction.
Investors rotated back into AI-exposed assets. The move followed increased demand for AI-related debt.
Loan Structure and Industry Demand
Both Vantage facilities will mature in four years. Borrowers can extend the loans for two additional one-year periods.
The loans will price around 2.5 percentage points above benchmark rates. They follow a structure similar to project and commercial real estate financings.
The loans remain interest-only during construction. They begin amortizing once operations start.
Oracle appointed two new co-CEOs last month. Mike Sicilia and Clay Magouyrk took the roles as the company ramps up data center investments.
Sicilia described Oracle’s position as unique for delivering “applied AI.” This includes infrastructure, analytics, and applications.
Oracle shares jumped over 40% last month. The company added $317 billion in future contract revenue in its latest quarter ending August 31.
Much of that new revenue came from a five-year, $300 billion deal with OpenAI. Moody’s flagged risks to Oracle’s balance sheet due to its reliance on OpenAI.
OpenAI CEO Sam Altman said the company won’t become profitable until 2029. This raised questions about the sustainability of Oracle’s build-out plans.
Investor demand for AI debt continues to grow. Meta Platforms recently secured a $29 billion debt and equity deal for data center expansion in Louisiana.
Bonds from the Meta deal began trading in secondary markets about a week before the Oracle announcement. They jumped as much as 10 cents on the dollar, yielding Pacific Investment Management Co. paper profits of approximately $2 billion.
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