Banks bet big on Oracle’s cloud future with $38B data center financing

JPMorgan Chase and Mitsubishi UFJ Financial Group are allegedly planning to finance Oracle-tied data centers with approximately $38 billion. The debt package will fund Oracle data centers in Wisconsin and Texas.

Vantage Data Centers will develop both the Wisconsin and Texas campuses which will allow Oracle to power OpenAI. According to a Bloomberg report, banks and private credit firms are making an effort to underwrite debt deals to support the development of large data centers.

OpenAI believes the AI sector needs billions of dollars to run

Other financial institutions are also committed to financing a $23 billion loan for the campus in Shackelford County, Texas. Both fundings, including the one for the Wisconsin data center, would turn out to be one of the largest ever debt packages for data centers.

The report also revealed that Oracle has not yet finalized the Port Washington, Wisconsin, data center deal. The source also revealed that the debt package is allegedly being priced at about 2.5 percentage points above the U.S. benchmark. 

The report revealed that both financial institutions will eventually distribute the debt to traditional loan investors and private credit funds. According to OpenAI, the AI sector will need trillions of dollars in funding to run and deploy large language models.

OpenAI revealed on July 22 plans to rent 4.5 gigawatts of additional data center capacity from Oracle to boost the company’s partnership. The initiative also aims to provide Wisconsin and Texas residents with electricity, with one gigawatt providing power to approximately 750,000 houses.

As the AI sector grows, private credit has become an important source of capital for AI development, but it also comes with significant risk. UBS Global Research analyst Mathew Mish said investors would be wary of the health of the asset class.

“This phenomenon could sustain significant growth plans for AI and other hyperscaler companies, sowing the seeds of an upside scenario and increasing overheating risks.”

–Mathew Mish, Head of Credit Strategy at UBS.

Oracle revealed plans on August 20 to spend tens of billions of dollars to develop large data centers. Despite energy and material shortages, the company plans to spend over $1 billion a year to power one new megasite in West Texas with gas generators instead of a utility connection. 

The source also revealed that Oracle’s growth has been mainly driven by artificial intelligence. The company’s booked deals and backlogs seem tied to customers training or deploying AI models with GPU-based servers.

The Texas-based tech company saw an 11% YoY increase in Q4 2025 revenues to $15.9 billion. The firm’s cloud services also surged by 14% to $11.7 billion. Oracle estimates that its cloud infrastructure growth rate will reach 70% in 2026 from 50% this year.

Oracle also expects its revenue growth to exceed its prior targets for the next two years. The firm had a strong start in the current fiscal year due to multiple cloud contracts already signed. The company said it already signed a cloud contract that would generate more than $30 billion in annual revenue beginning in FY28.

Oracle expands its cloud infrastructure to the Netherlands and the UK

The Texas-headquartered firm also plans to expand its Oracle Cloud Infrastructure (OCI) footprint in the Netherlands with a $1 billion investment. According to the company, the initiative will run over the next five years to meet the growing demand for its cloud services in the country. 

The deal will also include significantly expanding AI infrastructure capacity in the Oracle Cloud Amsterdam Region.

Wilfred Scholman, Oracle’s VP and Netherlands country leader, stated that the deal builds on the Dutch government’s ambition to establish a strong tech industry in the country for innovation and economic and social benefits.

Oracle also committed roughly $5 billion for the next five years to expand its OCI’s footprint in the UK. The initiative aims to deliver cloud computing services to target the growing demand for advanced computing resources in the country.

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