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A consortium of nearly 20 banks has reportedly agreed to provide a project finance loan of around USD 18 billion to fund the construction of a data centre campus associated with Oracle in New Mexico. The facility forms part of the Stargate initiative a USD 500 billion programme focused on expanding AI infrastructure across the United States. The financing, led by Sumitomo Mitsui Banking Corp, BNP Paribas, Goldman Sachs, and Mitsubishi UFJ Financial Group, is expected to be syndicated among institutional investors later this month.
A consortium of approximately 20 global banks has reportedly arranged a project finance loan worth about USD 18 billion to support the development of a data centre campus in New Mexico connected to Oracle. Bloomberg News, citing individuals familiar with the matter, stated that Sumitomo Mitsui Banking Corp, BNP Paribas, Goldman Sachs Group, and Mitsubishi UFJ Financial Group are serving as administrative agents for the transaction. Advertisement
These lead lenders have invited additional banks to participate and are preparing to syndicate the debt to further institutional investors through a retail process, with final commitments anticipated later this month. The move aligns with a broader trend among U.S. technology firms that are increasingly investing in large-scale data infrastructure to accommodate the growing computational requirements of advanced artificial intelligence systems such as OpenAI?s ChatGPT.
The New Mexico project is understood to be part of the Stargate initiative, a USD 500 billion effort led by OpenAI, SoftBank Group, and Oracle to strengthen AI infrastructure across the United States. Oracle is expected to become a tenant at the new facility once construction is completed.
Pricing discussions are reportedly centred around a rate of 2.5 percentage points over the secured overnight financing rate, with the loan structured for a four-year term and two optional one-year extensions. When approached for comment, Goldman Sachs and Oracle declined to respond, while the other lead banks did not immediately provide feedback.
The large-scale financing underscores the growing appetite among global lenders to support AI-driven infrastructure development. The collaboration between prominent financial institutions and technology firms reflects a deepening link between the banking and digital sectors as demand for data storage and processing capacity rises. With syndication expected to be completed later this month, the project marks a key step in advancing the Stargate initiative and further expanding the United States' high-capacity AI data network.
Source - Reuters
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