Pranav Hotkar
New York, United States - April 7, 2026 - Pacific Investment Management Co. is in discussions to arrange approximately USD 14 billion in debt financing for a major data center project being developed by Oracle in Michigan, signaling continued momentum in large-scale funding for AI infrastructure.
The proposed financing is being explored in collaboration with Bank of America and would support the construction of a hyperscale campus in Saline Township. If completed, the deal would position Pimco as a key financial backer of one of Oracle’s most ambitious data center developments to date.
The structure under consideration involves a private bond issuance, commonly referred to as a Rule 144A offering, allowing debt to be placed with large institutional investors rather than through traditional public markets. This approach is increasingly being used to fund capital-intensive digital infrastructure projects, particularly those tied to artificial intelligence workloads.
The Michigan facility is part of Oracle’s broader strategy to expand its cloud and AI infrastructure footprint in the United States. The company has indicated that development of the site is progressing on schedule, supported by ongoing financing efforts and partnerships with infrastructure and technology stakeholders.
The project has already attracted significant interest from financial markets, with multiple funding discussions underway. Separate financing efforts linked to the same campus have been reported to reach into the tens of billions of dollars, reflecting the scale and capital intensity of next-generation data center builds.
Industry observers note that such transactions underscore a broader shift in how large AI infrastructure projects are funded. Rather than relying solely on corporate balance sheets, companies are increasingly turning to structured debt and private credit markets to finance multi-gigawatt data center campuses.
For Pimco, the potential deal would mark another major step into digital infrastructure financing, building on its recent involvement in large-scale data center funding transactions. The growing role of institutional investors highlights the convergence of finance and technology as demand for compute capacity continues to surge.
While discussions remain ongoing and no final agreement has been announced, the scale of the proposed financing reflects the rising cost and complexity of building AI-ready infrastructure. As hyperscale operators accelerate expansion, access to capital is becoming as critical as access to power and land in determining the pace of deployment.
