Dallas data center development and investment platform Related Digital said on April 24 that it has secured financing for its $16 billion campus in Saline Township, Michigan, being built for Oracle.
Kirkland & Ellis advised Related Digital with a team that included Julian Seiguer, Mary Kogut and William Zakhary in Houston with Ieuan List in Austin and Max Baird in Dallas.
Michael Shultz and Katie Roddy advised from Los Angeles while Robin Basu and Kim McGrath provided counsel from Chicago.
Related Digital said the financing includes equity from Blackstone, the world’s largest alternative asset manager, as well as long-term debt financing by PIMCO-managed funds.
Simpson Thacher advised Blackstone with a New York team led by Sam Rudik, Scott Kobak, Jon Ozner, Sam Saunders and Ignacio Perez. A handful of Simpson Thacher lawyers in Los Angeles and Washington, D.C. also worked on the deal.
“Demand for digital infrastructure continues at a breathtaking pace, driven by AI and the broader digitalization of the economy,” according to Nadeem Meghji, global head of Blackstone Real Estate. “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.”
Related Digital Chaiman Jeff T. Blau said the financing validates “the critical role this project will play in America’s digital future.”
Related Digital said DTE Energy is supplying all of the project’s power “augmented by a new battery storage investment financed entirely by Oracle.” Hence, the project is expected to save exisiting DTE customers $300 million becasue of its “contribution towards the fixed costs of grid maintenance and improvements.” The Detroit-based energy company serves 2.3 million electricity customers in Southeast Michigan and 1.3 million natural gas customers across Michigan.
“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,” said Blau, who is also CEO of the private real estate development firm Related Companies.
Bank of America served as structuring agent on the deal and financial advisor to Related Digital, with Goldman Sachs and Wells Fargo also advising.