Investors push for higher yields on Oracle-backed data centre debt amid AI spending boom

Investors are demanding yields above Oracle’s 2040 bonds to back a $14bn Oracle-backed data-centre project in Saline Township, Michigan, as part of a $300bn OpenAI compute deal. Although some buyers want extra protections due to Oracle’s hefty AI spending and construction risk, the order book remains robust with Bank of America leading the sale in the 144A market; Pimco is expected to anchor, and Blackstone may contribute equity, signaling a potential rise in project-level debt financing without tech equity stakes.