JPMorgan Chase Nears Record $38 Billion Loan for Oracle's Data Centers

JPMorgan Chase & Co. and Mitsubishi UFJ Financial Group are closing in on a record $38 billion loan package to finance Oracle's data center projects. The two lenders secured a dozen banks and investors to contribute to the loan, but are still looking to offload less than $1 billion of the package. Once complete, it will be the largest debt package on record to finance data centers.

JPMorgan Chase & Co. (NYSE:JPM) and Mitsubishi UFJ Financial Group are nearing completion of a $38 billion loan package to finance Oracle Corp. (NYSE:ORCL) data center projects in Texas and Wisconsin. The deal, initiated in August 2025, has drawn participation from more than two dozen banks and investors to share the risk, though lenders are still seeking to offload less than $1 billion of the package. Once finalized, the loan will represent the largest debt package on record for data center financing in the U.S.

The financing effort has unfolded amid heightened geopolitical uncertainty and a growing perception of credit risk surrounding Oracle. Market observers have noted that the extensive effort to distribute the loan across a broad range of investors may signal a cooling in appetite for large-scale data center financing, particularly as the sector has already seen over $275 billion in borrowing since last year. Oracle's financial position has also raised concerns, with the company operating at negative free cash flow and experiencing rising costs to insure its debt against default.

The loan is part of Oracle's broader Stargate AI infrastructure initiative with OpenAI, which initially envisioned up to $500 billion in investments over four years. The Texas and Wisconsin data centers, to be developed by Vantage Data Centers, are structured as project finance construction loans, allowing Oracle to keep the debt off its balance sheet. The Texas facility is expected to be financed by a $23 billion loan, with a $15 billion loan earmarked for the Wisconsin project.