Blackstone, Related Digital Secure $16B Financing for Oracle Data Center Campus in Saline Township, Michigan
Related Digital and funds affiliated with Blackstone (NYSE: BX) have secured $16 billion in financing for a data center campus in Saline Township, Michigan, purpose-built for Oracle as part of Oracle's partnership with OpenAI to expand AI compute capacity across the United States, the companies announced April 24.
The financing structure combines equity commitments from Related Digital and Blackstone-affiliated funds with fixed-rate, long-term debt anchored by PIMCO-managed funds and accounts. Bank of America served as structuring agent and financial advisor on the transaction, with Goldman Sachs and Wells Fargo also serving as advisors to Related Digital.
Project Overview and Development Details
The Saline Township campus — known as "The Barn" for a historic red barn preserved at the project's entrance along Michigan Avenue — comprises three single-story data center buildings with more than one gigawatt of capacity. Construction on the first data center buildings is underway, and the project is on schedule for delivery to Oracle. The campus will utilize a closed-loop cooling system and is targeting LEED certification.
The development also includes the preservation of more than 750 acres of open space, farmland, and wetlands. Blackstone described the project as the largest ever investment in the state of Michigan.
"The strength of this financing is a powerful validation of what we have built at Related Digital and of the critical role this project will play in America's digital future," said Jeff T. Blau, CEO of Related Companies and Chairman of Related Digital. "We are grateful for the confidence of Blackstone, PIMCO, and our world class banking partners, institutions who understand the scale, complexity, and long-term value of what we are delivering for our partners at Oracle and OpenAI. I also want to extend my thanks to Governor Gretchen Whitmer, whose commitment to ensuring Michigan competes in the innovation economy in a responsible and forward-thinking way has made this possible. Major construction is well underway in Saline Township, momentum is strong, and we are laser focused on executing with the same discipline that has defined Related for more than 50 years."
Financing Structure and Institutional Participation
The financing architecture for the project reflects broad institutional participation across the capital stack. On the equity side, Related Digital — the development and investment platform founded by Related Companies, which manages more than $100 billion in assets owned or under development — serves as lead developer, with Blackstone-affiliated funds contributing equity alongside. PIMCO-managed funds and accounts anchor the fixed-rate, long-term debt component of the transaction.
Nadeem Meghji, Global Head of Blackstone Real Estate, said: "Demand for digital infrastructure continues at a breathtaking pace, driven by AI and the broader digitalization of the economy. This investment is another way we are capitalizing on this generational opportunity and helping provide much needed compute capacity. We're excited to back the largest ever investment in the state of Michigan and we look forward to supporting Related Digital as it delivers this critical AI infrastructure."
Energy Supply
DTE Energy is supplying 100% of the project's power using existing resources augmented by a new battery storage investment financed entirely by Oracle. The campus is expected to generate approximately $300 million in savings for DTE Energy's existing customers as a result of the project's contribution towards the fixed costs of grid maintenance and improvements.
"The rapid progress at our Saline Township data center underscores the urgency and scale of building America's next-generation AI infrastructure," said Mahesh Thiagarajan, Executive Vice President of Oracle Cloud Infrastructure. "Together with our partners, we are not just building a data center — we are creating high-quality jobs, investing in the communities in which we operate, and driving long-term economic growth. This project reflects our deep commitment to Michigan and to powering the future of AI in the United States."
Community Investment and Economic Impact
The project is structured to deliver a range of community benefits in Washtenaw County. According to the announcement, the campus is expected to create more than 2,500 union construction jobs, more than 450 permanent onsite positions, and more than 1,500 jobs county-wide. The development will also generate millions in new annual tax revenues for Saline Township, Washtenaw County, and Michigan schools, along with $14 million in direct benefits for the local fire department and community investment.
Related Digital's Development Pipeline
Related Digital describes itself as a vertically integrated data center development and investment platform that combines Related Companies' more than 50-year history of executing complex real estate and infrastructure projects with its track record in large-scale clean energy solutions. The firm maintains a $45 billion development pipeline of more than five gigawatts of near-term power across the United States and Canada, with active projects in Ontario, Wyoming, Michigan, Missouri, Illinois, and Texas.
The closing of the financing remains subject to the satisfaction of customary closing conditions, the companies noted.
Blackstone manages more than $1.3 trillion in assets under management across global investment strategies focused on real estate, private equity, credit, infrastructure, life sciences, growth equity, secondaries, and hedge funds.