In one of the biggest financing moves yet for artificial intelligence (AI) infrastructure, global banks are gearing up for a record US$38 billion (RM160.6 billion) debt offering that will fund two massive data centre projects connected to Oracle Corporation. The sale, expected to launch as soon as Monday, marks a major step in the ongoing race to build the backbone of the AI economy.
Two Mega Projects, One Massive Investment
The funding will be divided across two senior secured credit facilities: US$23.25 billion will go towards a new data centre in Texas, while another US$14.75 billion will help finance a similar facility in Wisconsin. Both projects are being developed by Vantage Data Centers, a major player in hyperscale data infrastructure.
Once completed, these facilities will reportedly be used by Oracle to power OpenAI operations, according to Bloomberg. The initiative forms part of Oracle's ambitious US$500 billion investment plan in AI infrastructure under the project code-named "Stargate" — a long-term effort to build next-generation computing hubs capable of handling the exponential demand created by AI workloads.
The Banks Behind the Deal
Leading the record-breaking financing are JPMorgan Chase & Co. and Mitsubishi UFJ Financial Group (MUFG), joined by a consortium of heavyweight lenders including Wells Fargo, BNP Paribas, Goldman Sachs, Sumitomo Mitsui Banking Corp, and Société Générale.
Industry insiders revealed that this multi-bank structure allows the debt to be distributed across institutional investors and private credit funds eager for exposure to AI infrastructure. The offering will consist of two tranches of secured loans — both interest-only during construction, and later amortising once operational. Each loan has a four-year maturity period, with two optional one-year extensions, and is expected to be priced around 2.5 percentage points above benchmark rates.
Investors Hungry for AI Exposure
The surge of investor appetite for AI-related projects has pushed banks and private credit firms into fierce competition to back large-scale data centre financings. Recent examples include Meta Platforms Inc's US$29 billion debt and equity package for its new Louisiana data centre — a deal led by PIMCO and Blue Owl Capital.
The Meta bonds, which began trading last week, quickly soared by as much as 10 cents on the dollar, giving PIMCO an estimated US$2 billion paper profit. That performance has intensified enthusiasm for AI infrastructure investments, with the Oracle-linked Vantage deal now seen as the next major opportunity in this rapidly expanding sector.
Building the Backbone of AI
These projects underscore the massive capital required to sustain AI's growth. Training and running large language models, powering cloud-based neural networks, and maintaining real-time global services all rely on energy-hungry, high-performance data centres.
Oracle's Stargate initiative — together with partnerships like this Vantage Data Centers project — highlights how traditional enterprise tech companies are repositioning themselves at the core of the AI revolution.
Although none of the key players — including Oracle, Vantage, or OpenAI — have officially commented, industry analysts view this deal as a milestone in the financialisation of AI infrastructure, blending technology ambition with Wall Street-scale financing.
