Blackstone is considering deepening its involvement in a large data-centre development in Michigan that will be leased long-term to Oracle, Bloomberg reported.

People familiar with the matter said Blackstone, which has already been in discussions to provide equity capital, is also weighing a potential debt commitment to support the project’s financing. Bank of America is leading efforts to raise about $14bn of debt.

The project, located in Saline Township, has drawn increased scrutiny after Oracle confirmed that Blue Owl Capital, a partner in some of its other AI infrastructure projects, would not be contributing equity. Oracle’s share price has fallen in recent months, while the cost of insuring its debt against default has risen.

Oracle is not the borrower on the project. Instead, it has agreed to a long-term lease for the facilities, generating contracted cash flows intended to support lender confidence. The company has committed $248bn to data-centre leases that have not yet commenced, using off-balance-sheet structures deployed in previous projects.

Blackstone has invested heavily in data-centre infrastructure, owning QTS Realty Trust and partnering with Digital Realty on developments across the US and Europe. The firm has also expanded into utilities and power assets critical to supporting large-scale computing.

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