Oracle has secured an $18 billion project‑finance loan from a consortium of roughly twenty banks, with Sumitomo Mitsui, BNP Paribas, Goldman Sachs and Mitsubishi UFJ acting as administrative agents. The loan will fund the construction of a new data‑center campus in New Mexico that is designed to house Oracle’s AI‑optimized cloud infrastructure and support the company’s expanding AI‑driven cloud services.
The financing is part of the larger “Stargate” initiative, a $500 billion effort led by OpenAI, SoftBank Group and Oracle to build nationwide AI infrastructure. The New Mexico campus is slated to provide over 1 GW of AI‑workload capacity, featuring an on‑site microgrid and closed‑loop cooling to support high‑density compute. Oracle will be the primary tenant, and the project is expected to begin construction in late November 2025 with a four‑year maturity and two one‑year extension options. The loan is priced at 2.5 percentage points above the Secured Overnight Financing Rate (SOFR).
Oracle’s executive vice president of Cloud Infrastructure, Mahesh Thiagarajan, said the New Mexico site is “key to advancing U.S. AI capabilities” and that the company is building “secure, reliable, and scalable solutions” to meet the growing demand for AI workloads from enterprise customers. The loan underscores Oracle’s strategy to double its 2025 capital expenditures to over $20 billion, positioning the company to compete more aggressively with hyperscalers in the AI cloud market.
The $18 billion financing signals strong confidence from the banking sector in Oracle’s AI strategy and the broader AI infrastructure boom. Analysts note that the Stargate initiative, which also includes data‑center projects in Texas and Wisconsin, reflects a national push to secure domestic AI compute capacity. Oracle’s move aligns with its full‑stack AI approach, integrating infrastructure, managed cloud services and embedded AI across its applications, and is expected to accelerate the company’s cloud adoption among large enterprises and government customers.
The loan’s terms—interest rate, maturity, and extension options—provide Oracle with a predictable debt profile that supports its long‑term investment in AI hardware. By securing this financing, Oracle can scale its data‑center footprint without diluting equity, while the partnership with OpenAI and SoftBank enhances its credibility in the AI ecosystem. The project is expected to strengthen Oracle’s competitive position and support its goal of becoming a dominant player in AI‑driven cloud services.
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