Blue Owl Withdraws from Oracle’s $10 Billion Michigan Data Center Project

According to Bloomberg, Blue Owl Capital has chosen not to participate in financing Oracle Corporation’s planned $10 billion data center in Saline Township, Michigan. The project, part of the Stargate initiative led by Oracle, OpenAI, and Related Digital, remains on track with other financial partners now in discussion.

Blackstone is reportedly negotiating to provide equity capital, while Bank of America is leading a roughly $14 billion debt deal to help fund construction. Oracle stated that its development partner, Related Digital, selected the “best equity partner” for the project and that final negotiations are proceeding on schedule.

The Michigan facility is expected to begin construction in early 2026. It will span a 250-acre site with approximately one gigawatt of IT capacity and consist of three single-story buildings. The project will use off-balance sheet financing, with Oracle entering long-term leases rather than owning the site directly.

Blue Owl’s decision follows concerns about leasing and debt conditions, as well as potential political delays in Michigan. The move comes amid heightened scrutiny of Oracle’s growing debt load and market sensitivity surrounding large-scale AI infrastructure investments.