One of the companies involved in a controversial Data Center project near Ann Arbor is denying a published report that the project is facing financing challenges.
The Financial Times is reporting the $10 billion data center project in Saline Township is “in limbo” after funding talks with the investment firm Blue Owl stalled over concerns with debt terms and potential delays.
“The private capital group has been the primary backer for Oracle’s largest data centre projects in the U.S., investing its own money and raising billions more in debt to build the facilities," the Financial Times reported. "Blue Owl typically sets up a special purpose vehicle, which owns the data centre and leases it to Oracle.”
Tech giants OpenAI and Oracle, and developer Related Digital, plan to start construction on the project in 2026. But local opposition and questions about the data center’s demand for electricity and water resources have arisen.
An Oracle spokesman said the Financial Times story was incorrect:
“Our development partner, Related Digital, selected the best equity partner from a competitive group of options, which in this instance was not Blue Owl. Final negotiations for their equity deal are moving forward on schedule and according to plan,” said Oracle spokesperson Michael Egbert, in a written statement to Michigan Public.
Related Digital insisted reports that Blue Owl has walked away from the project are “unequivocally false.”
“This project has the strong support of the Governor and is moving forward as planned. We have already begun pre-construction work on the site, in accordance with all local and state permitting processes. We expect full construction to begin in Q1 2026 and to deliver the project on schedule,” said Natalie Ravitz, Related Digital Spokesperson.
Michigan Public has not received a comment from Blue Owl.
