Banks Provide $18 Billion Loan for Oracle-Linked Data Center in New Mexico

A consortium of around 20 banks is providing a roughly $18 billion project finance loan to fund the construction of a data center campus tied to Oracle Corporation in New Mexico, according to Bloomberg.

The facility, located in Doña Ana County, is part of the Stargate initiative — a $500 billion effort led by OpenAI, SoftBank Group Corp., and Oracle to expand AI infrastructure across the United States. Oracle is expected to be the primary tenant at the new site.

Sumitomo Mitsui Banking Corp., BNP Paribas SA, Goldman Sachs Group Inc., and Mitsubishi UFJ Financial Group are serving as administrative agents for the loan. The banks plan to syndicate the debt to additional institutions and investors, with commitments expected by late November.

The financing terms are being discussed at 2.5 percentage points over the Secured Overnight Financing Rate, with a four-year maturity and two optional one-year extensions. Blue Owl Capital is providing equity for the project, while BorderPlex Digital Assets and STACK Infrastructure are managing development and construction. Local authorities have also approved a $165 billion industrial revenue bond package and tax incentives to support the initiative.