Blue Owl decided not to pursue Oracle's $10 billion Michigan data center, source familiar

Core Viewpoint - Oracle is facing challenges in financing its $10 billion data center project in Michigan, particularly after reports of negotiations breaking down with potential equity partners [2][3]. Financing and Partnerships - Oracle's development partner, Related Digital, has selected the best equity partner from a competitive group, which was not Blue Owl, and final negotiations are reportedly moving forward [2]. - Blue Owl opted not to pursue the Michigan data center project due to unfavorable debt terms and repayment structures, although it remains involved with two other Oracle data centers [3][5]. Market Concerns - There is growing concern in the market regarding the capital-intensive nature of developing data centers, especially as Oracle increases its use of debt to fund these projects [3][4]. - Investors are becoming more critical of the details and nuances of such deals compared to earlier in the year, reflecting a shift in sentiment towards evaluating return on investment [6]. Project Status - Despite the financing challenges, Oracle maintains that the project is not on hold and is in final discussions with various partners to move forward [7].