Oracle Corp (NYSE:ORCL, XETRA:ORC) shares fell almost 6% on Wednesday morning after the Financial Times reported that its plans for a $10 billion data center in Michigan have been thrown into uncertainty after Blue Owl Capital, its largest data center investment partner, decided not to back the project.
The proposed facility, a 1-gigawatt data center in Saline Township, Michigan, was intended to support OpenAI and Oracle’s broader push to expand artificial intelligence infrastructure.
According to the FT, Blue Owl’s withdrawal has created a funding gap and placed the project’s financing structure in question.
The FT reported that lenders have become increasingly cautious about Oracle’s rising debt levels and heavy capital spending tied to its AI ambitions, prompting Blue Owl to step back from the deal.
The publication described the move as part of a broader reassessment by financiers of large-scale AI infrastructure investments.
Oracle said negotiations on the equity portion of the project were still ongoing, signaling that the development has not been abandoned. However, the loss of a key backer has pressured the project’s timeline and raised questions about whether alternative financing can be secured on similar terms.
The report noted that Blue Owl’s participation had been central to the project’s funding plan, which relied on a substantial equity investment alongside debt financing. Its exit, the FT said, has heightened uncertainty around the overall package despite continued discussions among Oracle and its partners.