A consortium of around 20 banks is granting a project finance loan worth approximately $18 billion to fund the construction of a large data center campus in Doña Ana County, New Mexico, connected to Oracle Corp. The project represents one of the latest high-value deals fueling the AI infrastructure boom in the United States.
Sumitomo Mitsui Banking Corp, BNP Paribas, Goldman Sachs, and Mitsubishi UFJ Financial Group are leading the financing as administrative agents. The group plans to distribute the debt to additional banks and institutional investors through a retail syndication, with commitments expected by the end of November.
The data center is part of the Stargate project, an initiative by OpenAI, SoftBank, and Oracle aimed at investing $500 billion in AI infrastructure across the country. Oracle will be the main tenant, while Blue Owl Capital is providing equity for the development. The Austin-based BorderPlex Digital Assets is coordinating the project alongside STACK Infrastructure, a data-center operator owned by Blue Owl.
The financing terms reportedly include an interest rate of about 2.5 percentage points over the Secured Overnight Financing Rate (SOFR), with an initial maturity of four years and the option to extend twice for an additional year each time.
This deal mirrors another $38 billion financing for Oracle-related data centers in Texas and Wisconsin, being developed by Vantage Data Centers to support OpenAI operations.
AI-driven infrastructure investments continue to surge, with Morgan Stanley estimating over $3 trillion in AI-related capital expenditures in the next three years. Financing for such projects now ranges from construction loans and syndicated debt to corporate bonds and private credit deals.
In recent months, Meta Platforms sold $30 billion in bonds and secured another $30 billion in private capital with Blue Owl and PIMCO to fund its Hyperion data center in Louisiana. Similarly, Oracle raised $18 billion in high-grade bonds in September to expand its AI infrastructure footprint.
The New Mexico initiative has also gained substantial support from local authorities, with Doña Ana County commissioners approving $165 billion in industrial revenue bonds and extensive tax incentives, one of the largest economic development efforts in the state’s history.
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