Banks ready $38 billion of debt for data centers tied to Oracle

Banks ready $38 billion of debt for data centers tied to Oracle

Banks are preparing to inject $38 billion in debt to finance data centers linked to Oracle Corporation (NYSE:ORCL). This significant investment underscores the growing demand for data center infrastructure, driven by the increasing adoption of artificial intelligence (AI) and cloud services.

According to a report by Bloomberg, Oracle is spending tens of billions of dollars to develop large data centers amid energy and material shortages. The company is projected to spend over $1 billion annually just to power a new megasite in West Texas with gas generators, highlighting the scale of its expansion plans [1].

Oracle's cloud services and license support revenues rose by 14% in USD and constant currency to $11.7 billion in Q4 2025, with cloud infrastructure growth projected to increase from 50% in FY 2025 to more than 70% in FY 2026. The company's backlog, or booked deals, remains tied to customers training or deploying AI models with GPU-based servers, indicating a strong demand for data center services [1].

nVent Electric plc (NYSE:NVT), a global leader in electrical connection and protection solutions, has also expanded its data center solutions manufacturing capacity. The company announced the lease of a new 117,000 square foot facility in Blaine, MN, to meet growing liquid cooling demand. This is the second expansion in two years, underscoring the growing need for data center infrastructure [2].

The $38 billion in debt financing is expected to support the construction and operation of these data centers, which will be crucial in supporting Oracle's AI and cloud services growth. As AI continues to drive demand for data center services, the investment by banks signals confidence in the sector's long-term prospects.

References:

[1] https://finance.yahoo.com/news/oracle-orcl-focuses-developing-large-041414111.html

[2] https://www.nasdaq.com/press-release/nvent-expands-data-center-solutions-manufacturing-new-us-production-facility-2025-09