Oracle Corp. stock moved higher on Wednesday following a report that Blackstone is considering increasing its financial involvement in Oracle's data-center development in Saline Township, Michigan, though the shares later gave back most of the advance and closed lower on the session.
According to people familiar with the matter, Blackstone - already in discussions to provide equity capital for the project - is now weighing a separate debt investment to bolster the site's financing. Bank of America is leading efforts to assemble debt for the project, with an initial fundraising target of $14 billion.
Market reaction was transient. Oracle shares rose into positive territory on the news but had pared gains by mid-afternoon, finishing down 0.8% in afternoon trading.
The Saline Township development has come under heightened examination since Oracle disclosed last month that Blue Owl Capital would not be contributing equity to this project, despite being a partner on some of Oracle's other AI infrastructure initiatives.
Separately, Oracle's share price has fallen in recent months while the cost to insure the company's debt against default has climbed. Those two trends have prompted questions from some prospective investors about whether the originally agreed terms for the Michigan project can be upheld given current market volatility.
Financing snapshot
- Blackstone is reportedly considering a debt investment in addition to prior equity discussions.
- Bank of America is leading the debt raise, with an initial $14 billion target.
- Blue Owl Capital will not provide equity for the Saline Township project.
The developments illustrate active negotiations around the capital structure of a major cloud and AI infrastructure site, and show how shifting partner commitments and market conditions are intersecting with large-scale project financing.