Oracle announced a $16 billion financing package to build a new AI‑focused data‑center campus in Saline Township, Michigan, known as “The Barn.” The campus will provide more than one gigawatt of capacity to support Oracle’s expanding cloud and AI infrastructure business.
The financing was structured by Related Digital and backed by Blackstone and PIMCO‑managed funds. It is part of Oracle’s $50 billion capital‑expenditure plan for fiscal year 2026, of which the company has already raised $30 billion through debt and convertible equity. The new campus will help Oracle meet the growing demand for AI compute and accelerate the conversion of its large backlog of AI contracts into revenue.
Oracle’s Q3 FY2026 results showed total revenue of $17.2 billion, up 22% year‑over‑year, and cloud revenue of $8.9 billion, up 44% year‑over‑year. Cloud infrastructure revenue rose 84% to $4.9 billion, underscoring the rapid expansion of Oracle Cloud Infrastructure (OCI) and the need for additional data‑center capacity. The company’s earnings beat expectations, with a non‑GAAP EPS of $1.79 versus the consensus estimate of $1.70, driven by strong demand in its core cloud and AI segments and disciplined cost management.
Oracle’s leadership highlighted the strategic importance of the Michigan campus. “The rapid progress at our Saline Township data center underscores the urgency and scale of building America’s next‑generation AI infrastructure,” said Mahesh Thiagarajan, Executive Vice President, Oracle Cloud Infrastructure. “Together with our partners, we are not just building a data center—we are creating high‑quality jobs, investing in the communities in which we operate, and driving long‑term economic growth.” Jeff T. Blau, CEO of Related Companies and Chairman of Related Digital, added, “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.”
The campus, which began construction in February 2026, will incorporate a closed‑loop cooling system to minimize water usage and preserve surrounding natural areas. Oracle expects the project to create thousands of jobs and generate significant tax revenue for the local community. The partnership with OpenAI will provide the necessary compute power for OpenAI’s large‑language models, positioning Oracle as a foundational AI infrastructure provider alongside AWS, Azure, and Google Cloud.
Oracle’s FY2026 capital‑expenditure plan of $50 billion reflects the company’s ambition to scale OCI and compete in the AI infrastructure race. The $16 billion financing for the Michigan campus is a key milestone in that plan, enabling Oracle to expand its gigawatt‑scale data‑center footprint and support the continued growth of its cloud and AI businesses. Investors responded favorably to the earnings beat and guidance, reflecting confidence in Oracle’s cloud growth and its long‑term growth strategy.
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