Largest AI infra debt to fund $38b Oracle data centers projects

Banks are preparing a US$38 billion debt package to fund data centers for Oracle in Texas and Wisconsin, sources told Bloomberg.

Vantage Data Centers is developing both sites, which Oracle will use to support OpenAI.

JPMorgan Chase, Mitsubishi UFJ Financial Group, Wells Fargo, BNP Paribas, Goldman Sachs, Sumitomo Mitsui Banking, and Societe Generale are among banks involved in the financing.

The debt is split into two senior secured credit facilities: US$23.3 billion for the Texas center and US$14.8 billion for Wisconsin.

Both facilities have four-year maturities with options to extend for two more years, and are expected to price at about 2.5 percentage points above the benchmark rate.

The loans will be interest-only during construction, then amortize when operations begin.

This would be the largest debt deal for AI-related infrastructure to date, after Meta’s recent US$29 billion data center financing in Louisiana.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Debt structure sidesteps grid delays but hinges on 2027 power delivery

The $38 billion financing uses interest-only payments during construction (no principal due) then switches to amortization (scheduled principal paydown) once operations start.
Vantage is working with We Energies (a Wisconsin electric utility serving Milwaukee and nearby communities) to connect 1.3 GW by late 2027 1. Buildout could reach 3.5 GW, 43% of the utility’s capacity.
We Energies is advancing a plan for 4.3 GW of renewables and 2 GW of natural gas 1. An update is due in fall 2025, and the utility proposed a special rate to shield other customers from data center infrastructure costs.
Frontier campus needs Electric Reliability Council of Texas (ERCOT) grid access 2. The article does not say if Vantage has substation interconnect timelines or power purchase agreements.
If utility timelines slip or transformer lead times stretch, the four year loan maturity with two one year extensions leaves little cushion before amortization triggers without revenue.

High-voltage gear and liquid cooling suppliers can target permit filings now

Civil work in Wisconsin includes substations, feeders, emergency power plus a water tower 3 4. Vantage fronts $175 million that Port Washington will reimburse via Tax Incremental Financing (TIF) 3 4.
Energy tech vendors plus engineering, procurement, and construction (EPC) firms can monitor permits plus contractor bids. Texas has builds in San Antonio labeled TX21, TX22, and TX12, which extends buying window through August 2027 5.