PIMCO Eyes $14B Debt Financing for Oracle Data Center

According to industry sources, Pacific Investment Management Company is in discussions with Bank of America to arrange approximately $14 billion in debt financing for a new data center project being developed by Oracle Corporation in Michigan.

If finalized, PIMCO would become a key financial backer of the data center campus located in Saline Township. The financing is expected to be structured primarily through bond issuance, with the possibility that a portion of the debt securities may be distributed to other institutional investors.

The initiative comes as Oracle’s debt levels rise alongside its accelerating investment in artificial intelligence (AI) infrastructure. In February, the company announced plans to raise up to $50 billion this year through a combination of debt and equity offerings to support its expanding cloud and AI capabilities.

Sources indicate that the proposed financing may adopt a Rule 144A structure—a mechanism that allows securities to be privately placed with qualified institutional buyers, rather than issued through public markets or traditional bank lending channels.

Oracle stated that financing and development of the Saline Township data center are progressing rapidly, with the project currently on schedule.

In parallel, data center developer Related Digital is nearing completion of a separate $16 billion financing package for the same Oracle facility in Saline Township, further underscoring the scale and strategic importance of the project.

To support its long-term infrastructure expansion, Oracle recently appointed Hilary Maxson as Chief Financial Officer. With extensive experience in infrastructure and energy sectors, Maxson is expected to play a pivotal role in advancing Oracle’s investment strategy to meet growing global demand for AI and cloud services.