Oracle aims to raise $50 billion for additional data center capacity

"Oracle wants to raise between $45 billion and $50 billion this year to expand its rapidly growing Oracle Cloud Infrastructure. The money is needed to meet demand from major customers, including Meta, OpenAI, Nvidia, and xAI. The financing will come from a mix of debt and equity. Oracle wants to raise about half of the funds through share issues. The other half will come from a one-time bond issue in early 2026."

"Oracle's cloud business is growing rapidly. Last quarter, the company signed approximately $7 billion in new OCI commitments. Oracle expects cloud infrastructure revenue to grow 70 percent this fiscal year. Customers such as Nvidia and TikTok are demanding more capacity The contracts Oracle has signed with big names such as AMD, Meta, Nvidia, OpenAI, TikTok, and xAI require significant investments in data center capacity. The demand for AI infrastructure is so great that current capacity is insufficient."

"Oracle's decision to raise such a large sum of money did not come out of the blue. The company is collaborating with OpenAI on the Stargate project, which is expected to deliver more than 1 gigawatt of data center capacity in Michigan alone. According to previous announcements, the total Stargate project involves more than 8 gigawatts and $450 billion in investments. Oracle emphasizes that the financing strategy must maintain its investment-grade rating. The board of directors has approved the transactions."

Oracle plans to raise $45–50 billion this year to expand Oracle Cloud Infrastructure to satisfy capacity needs from major AI customers. The financing will combine debt and equity, with about half raised via share issuances and the remainder through a one-time bond issuance in early 2026, while preserving an investment-grade rating. Last quarter produced roughly $7 billion in new OCI commitments, and Oracle forecasts 70 percent cloud infrastructure revenue growth this fiscal year. Large contracts with AMD, Meta, Nvidia, OpenAI, TikTok, and xAI require substantial data center investment because current capacity is insufficient. The Stargate collaboration with OpenAI targets over 1 gigawatt in Michigan as part of an over 8 gigawatt program.

Read at Techzine Global