Oracle faces data center setbacks due to debt

Oracle faces data center setbacks due to debt

By Nileena Sunil
Publication Date: 2025-12-18 16:28:00

Investor concerns about Oracle now appear to be affecting the company’s data center projects in addition to its stock prices. Asset management firm Blue Owl Capital has pulled out of Oracle’s $10 billion data center project due to unfavorable debt terms amid concerns about the size of the company’s debt, according to the Financial Times.

Blue Owl, Oracle’s largest data center partner, had been in discussions with lenders and Oracle about investing in a massive facility in Michigan.

Oracle spokesman Michael Egbert said in a statement to Yahoo Finance that its development partner Related Digital “selected the best equity partner from a competitive group of options, which in this case was not Blue Owl.”

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Blue Owl has been a major player in the AI ​​data center boom and also worked with Oracle on its data center projects in Texas and New Mexico. It had…