By Rafe Rosner-Uddin,Tabby Kinder
Publication Date: 2025-12-17 13:13:00
Blue Owl Capital, Oracle’s largest data center partner, will not back a $10 billion deal for its next facility as the software giant faces increasing concerns about its rising debt and artificial intelligence spending.
Blue Owl had been in discussions with lenders and Oracle about investing in the planned 1 gigawatt data center to be built for OpenAI in Saline Township, Michigan.
However, the deal will not go ahead after negotiations stalled, according to three people familiar with the matter.
The private equity group was the top financier of Oracle’s largest data center projects in the U.S., investing its own money and taking on billions more in debt to build the facilities. Blue Owl typically creates a special purpose entity that owns the data center and leases it to Oracle.
Larry Ellison’s computing giant has contracts to supply computing power from these data centers to AI groups like OpenAI.
The failure of the financing talks with Blue Owl leaves the financing of the … open.
