A consortium of banks is providing an $18 billion project finance loan for a data center linked to Oracle in New Mexico. Lead banks include Sumitomo Mitsui, BNP Paribas, Goldman Sachs, and Mitsubishi UFJ. The debt will be sold to additional banks and investors by late November.

Tech firms are investing in data centers to meet demand for computing power for AI models like OpenAI’s ChatGPT. The New Mexico data center is part of the Stargate initiative, a $500 billion project led by OpenAI, SoftBank, and Oracle. Oracle is expected to be a tenant at the new site.

The loan for the data center project is expected to have a pricing of 2.5 percentage points over the secured overnight financing rate with a four-year maturity and two one-year extension options. Goldman Sachs and Oracle declined to comment, while the other lead banks did not respond to requests for comment.

Read more at Yahoo Finance: Banks lend $18 billion for Oracle-tied data center project, Bloomberg News reports