Wedoany.com Report-Nov. 8, A consortium of about 20 banks is extending a project finance loan of roughly $18 billion to fund the construction of a major data center campus in New Mexico associated with Oracle, Bloomberg News reported on Friday. The financing marks one of the largest deals in the data infrastructure sector this year, reflecting accelerating investment in artificial intelligence-related computing capacity.

Oracle logo is seen in this illustration taken September 9, 2025.

According to the report, Sumitomo Mitsui Banking Corp, BNP Paribas SA, Goldman Sachs Group, and Mitsubishi UFJ Financial Group are serving as administrative agents for the project. The four leading banks have recruited additional financial institutions to participate and are preparing to distribute portions of the debt to other banks and institutional investors through a retail syndication process. Commitments for participation in the loan are expected to be finalized by late November.

The data center project in New Mexico is part of the large-scale “Stargate” initiative, a $500 billion infrastructure program designed to strengthen artificial intelligence capacity across the United States. The initiative is being led by OpenAI, SoftBank Group, and Oracle, according to the report. Oracle is expected to be one of the main tenants at the new facility once construction is complete.

As global technology companies race to expand their computing infrastructure, investments in new data centers have surged. The rapid growth of advanced AI systems, including OpenAI’s ChatGPT, has created unprecedented demand for energy-intensive cloud and computing capabilities, prompting major firms to secure long-term financing for large-scale data centers.

The report added that pricing discussions for the loan are centered around 2.5 percentage points above the secured overnight financing rate (SOFR). The loan will have a four-year maturity period, with two optional one-year extensions. This structure offers flexibility for the consortium and allows for future refinancing as the project progresses.

Neither Oracle nor Goldman Sachs commented on the report. The other lead banks also did not immediately respond to Reuters’ requests for comment.

The New Mexico project underscores the growing financial collaboration between major global banks and technology companies to support the infrastructure required for next-generation AI development. With Oracle expected to occupy the site and OpenAI’s involvement in the broader Stargate initiative, the project represents a key link in the expanding network of data centers aimed at enhancing U.S. computational power.

Industry analysts note that such large-scale financing deals highlight the increasing convergence of finance and technology sectors in supporting AI-driven innovation. As AI applications continue to expand, demand for high-capacity, energy-efficient data centers is expected to grow further in the coming years, positioning projects like the New Mexico campus as essential to future technological development.