Banks Prep Series of Multibillion-Dollar Debt Offerings for Oracle to Fund AI-Related Data Centers; Offerings Include $38B in Loans, $18B in Debt With Bonds

Software leader Oracle is preparing to launch a series of multibillion-dollar debt offerings to finance the development of multiple AI-related data centers across the United States, according to sources familiar with the deals.

Of the debt offerings for Oracle is a $38 billion deal, which will consist of $23 billion and $15 billion term loans led by JPMorgan among multiple other banks, according to sources. Proceeds from the loans will fund two data centers developed by Vantage Data Centers in Wisconsin and Texas, sources said.

The term loans for Oracle will have four-year maturities with two one-year extensions, said one investor, who added that JPMorgan and the banks have been building a book from buy-side participants and that the deal should launch in a few weeks, though terms are subject to change. The investor also noted that it has been interesting to see traders buying CDS on Oracle recently at two-year highs.

Oracle is also preparing $18 billion in other debt financing, which would include bonds, likely to be rated investment grade, according to sources. Proceeds from the deal will fund the development of an Oracle-affiliated data center in New Mexico, with financing led by SMBC, MUFG, BNP Paribas and Goldman Sachs, among others, according to sources.

Market participants have been generally supportive of Oracle’s deal, said a banker, noting that the software giant is a strong tenant from a real estate perspective. The banker added that the deal has been largely finalized but may not come until the first quarter of 2026. Several banks are involved, including regional banks that are split between a focus on data centers and on real estate, the banker said.

The New Mexico, Wisconsin and Texas data centers are all part of OpenAI’s partnership with Oracle for the Stargate Project, a program which intends to invest $500 billion over the next four years in AI infrastructure in the United States, according to a press release by OpenAI.

As part of the Stargate partnership, Vantage Data Centers is developing the Wisconsin and Texas centers, while STACK Infrastructure is developing the New Mexico center.

Oracle is one of several large debt financing packages that would tap the primary market, as data centers are increasingly needed to fuel the boom of AI in recent months. For example, Bitcoin mining company TeraWulf issued a $3.2 billion high-yield bond in October to fund its data center operations in New York, which will be guaranteed by Google, printing at a 7.75% yield. TeraWulf’s notes were last trading in the secondary on Nov. 10 at a price of 103.49 to yield 6.73%, according to MarketAxess.

Oracle holds Baa2/BBB ratings from Moody’s Ratings, S&P Global Ratings and Fitch Ratings. In a September rating note, S&P said Oracle’s credit profile will become further strained by accelerating AI infrastructure growth and noted the risk of potential data center overcapacity should AI computing demand slow over time.

In September, Oracle sold $18 billion of investment-grade bonds to finance general corporate purposes, according to third-party reports. Oracle’s 2030 bonds were last trading on Nov. 10 at a price of 99.25 to yield 4.62%, while its 2032 notes were last trading on Nov. 10 at a price of 98.7 to yield 5.02%, according to MarketAxess.

Oracle trades on the Nasdaq under the ticker ORCL and was last quoted at about $234.77 a share today, according to Yahoo Finance.

JPMorgan, Goldman Sachs, Sumitomo Mitsui Banking Corp. and Oracle declined to comment. Mitsubishi UFJ Financial Group and BNP Paribas did not respond to requests for comment.