Stock Markets February 4, 2026

Banks Seek Buyers for Investment-Grade Loans Tied to Oracle Data Centre Builds

Lenders pitch insurance firms and private credit to absorb billions in construction loans backed by Oracle leases linked to OpenAI deal

By Maya Rios ORCL
Banks Seek Buyers for Investment-Grade Loans Tied to Oracle Data Centre Builds
ORCL

Lenders are soliciting new investors to take on billions of dollars in construction loans issued for Oracle's data centre expansion. Roughly $56 billion of those loans have been assigned investment-grade ratings and are secured by future Oracle leases linked to a $300 billion arrangement with OpenAI. The investment-grade treatment has broadened potential buyers beyond traditional project-finance channels, including insurance companies and private credit funds. This fundraising push coincides with growing debt issuance among major technology firms and Oracle's plan to raise about $50 billion in 2026 for its data centre rollout.

Key Points

  • Banks are seeking new investors to buy billions in loans tied to Oracle's data centre construction.
  • Approximately $56 billion of those construction loans have been rated investment-grade and are backed by future Oracle leases connected to a $300 billion agreement with OpenAI.
  • Potential buyers being approached include insurance companies and private credit funds as technology firms and lenders look beyond traditional project-finance funding channels.

Banks are approaching investors to purchase sizable pools of construction loans originated for Oracle's data centre projects, according to people familiar with the matter. About $56 billion of those loans have been given investment-grade ratings and are collateralised by Oracle's future lease payments under its $300 billion agreement with OpenAI.

Investment-grade status for construction-stage infrastructure loans is unusual. That grading has allowed banks to widen the set of prospective buyers beyond the traditional project-finance investor base. Insurers and private credit funds are among the types of institutions being targeted as potential purchasers, reflecting how the rating has changed the marketing dynamics for these deals.

Historically, project finance for infrastructure - such as toll roads and airports - has been underwritten and held largely by the originating banks. The scale of recent hyperscale data centre developments has strained that model, pushing technology companies to look for alternate sources of capital to fund rapid expansion.

The effort to source third-party buyers for these loans comes amid a broader uptick in debt issuance by major technology companies. Forecasts cited by market participants indicate that, by 2030, half of the 10 largest borrowers in the U.S. investment-grade bond market will be hyperscalers - firms that are accelerating cloud capacity and data centre buildouts.

Separately, Oracle has signalled plans to raise roughly $50 billion in 2026 to support its data centre expansion. The combination of very large capital requirements and investment-grade construction loans is shaping how banks and technology firms structure financing for next-generation data centre platforms.


Context and market implications

The issuance and marketing of investment-grade construction loans for data centres indicate a shift in project finance practices for very large technology-led infrastructure plays. The adoption of investment-grade ratings for loans at the construction phase has enabled lenders to pitch a broader array of institutional buyers than is typical for such debt.

Risks

  • Uncertainty in finding sufficient external buyers for very large construction loans could affect banks' ability to offload risk - impacting project finance and banking sectors.
  • The scale of data centre financing needs exceeds traditional bank-held project finance capacity, creating funding pressure for technology firms and capital providers.
  • Rising debt issuance among major technology companies may increase competition for investor capital, affecting credit markets and insurance/private credit demand.

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