Oracle’s $65B Data Center Borrowing Spree Sparks Lender Concerns

Oracle's aggressive expansion into cloud infrastructure is testing Wall Street's risk appetite. The tech firm has emerged as OpenAI's primary cloud partner, triggering a $65 billion borrowing surge this year to build data centers for its $300 billion contract. Lenders now face concentrated exposure to a company carrying a weaker credit rating than cloud peers.

Debt concerns are magnified by Oracle's deepening reliance on OpenAI—a firm projected to operate at losses until at least 2029. Projections show Oracle's total debt could balloon to $290 billion by 2028, nearly triple current levels. While lenders continue financing tech-backed projects, rising interest rates are tightening credit conditions across the sector.

The strain is already visible. CoreWeave recently faced a revenue downgrade, signaling broader pressures in cloud infrastructure financing. What began as strategic partnership now risks becoming a systemic vulnerability, with lenders reassessing their exposure to Oracle's high-stakes cloud gamble.