Banks will make the largest loan ever to build data centers. What does this have to do with Oracle?

A consortium of banks led by JPMorgan Chase is preparing early next week to provide a $38 billion loan to partner Oracle to finance the construction of data centers, Bloomberg reported citing sources. This is the largest deal in history to attract borrowed funds for the purpose of creating infrastructure for artificial intelligence, the agency claims.

According to Bloomberg, financing in the form of two syndicated loans secured by assets will be received by Vantage Data Centers, which is building two data centers. According to Bloomberg, these data centers will be used by IT giant Oracle to meet the needs of OpenAI, a developer of artificial intelligence ChatGPT.

The first $23.25 billion package will be used to build a data center in Texas, while the second - for $14.75 billion - is intended for a project in Wisconsin, Bloomberg sources said. According to them, Vantage Data Centers will receive these loans for four years with the possibility of two one-year extensions.

Both projects are part of the $500 billion Stargate artificial intelligence infrastructure development program, which Oracle and the ChatGPT developer are jointly implementing. As The Wall Street Journal reported in September, OpenAI has leased computing power from Oracle for five years, starting in 2027, and will pay $300 billion for it.

JPMorgan Chase and Mitsubishi UFJ Financial Group are the organizers of the deal on financing the construction of data centers. According to the results of the first round of selection of underwriters Wells Fargo, BNP Paribas, Goldman Sachs, Sumitomo Mitsui Banking and Societe Generale were also included in the consortium, Bloomberg sources reported. According to them, the second round of underwriting ended this week.

Representatives of OpenAI, JPMorgan, Mitsubishi UFJ and Sumitomo Mitsui declined to comment to Bloomberg. Oracle, Vantage Data Centers and other banks did not respond to the agency's requests.

Oracle's order book grew by 360% last fiscal quarter (June through August) and reached $455 billion by early September. This amount of future revenue from contracts already awarded has allowed Oracle to forecast growth in its Oracle Cloud Infrastructure business by 77%, to $18 billion, this fiscal year (ending Ma. 31, 2026) and to $144 billion by Ma. 2030. The company plans to summarize the results of the current fiscal quarter in mid-December.

The explosive growth in Oracle's order book that has stunned Wall Street has been fueled by four multibillion-dollar contracts with three customers the company doesn't disclose. Oracle executive vice chairman Safra Catz told a conference call in September that she planned to finalize several more such agreements in the coming months. At the time, Katz said Oracle already had major contracts with "leaders in the artificial intelligence space, including OpenAI, xAI, Meta, Nvidia, AMD and many others."

Oracle shares have risen 68% since the beginning of 2025, while the benchmark U.S. index S&P 500 has added 14.5% over the same period. At the same time, the average target price of the company's securities of $351.6, calculated by FactSet, assumes their growth by another 26% in the next 12 months.

The securities have 47 ratings from analysts and most recommend Oracle stock to buy (26 Buy and seven Overweight), while 13 advise Hold, one Sell.

This article was AI-translated and verified by a human editor