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Blackstone considers debt investment for Oracle data center project in Michigan
Wednesday, January 28, 2026 at 05:46 PM
Blackstone is evaluating an expansion of its financial backing for Oracle Corp.'s data center project in Michigan. The firm is considering adding debt investment to its existing equity capital discussions to strengthen the project's financing.
Context
Blackstone is reportedly expanding its financial commitment to Oracle’s massive data center project in Michigan. Already in talks to provide equity, the asset manager is now considering a direct debt investment to shore up the site’s financing. This pivot follows the exit of Blue Owl Capital, which withdrew from negotiations due to concerns over lease terms and infrastructure risks.
The development in Saline Township is a cornerstone of the Stargate AI initiative involving OpenAI. Bank of America is currently spearheading a $14 billion debt package for the site, which is engineered to provide 1.4 gigawatts of power capacity. With total project costs estimated at over $10 billion, construction is scheduled to begin in Q1 2026.
Blackstone’s potential dual-role as an equity and debt provider offers essential stability for Oracle’s aggressive AI infrastructure roadmap. This reliance on private credit underscores the intensifying demand for specialized hardware and high-density power capacity required to sustain the broader AI supply chain.
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