Dan Ivascyn, group chief investment officer at PIMCO, is working to secure terms for a $16 billion financing package tied to an Oracle data center project. The deal, if completed, would mark one of the largest private credit transactions backing infrastructure built for artificial intelligence workloads.
What the deal involves
The financing would support Oracle's expansion of data center capacity, a key piece of the company's push to host AI and cloud services for enterprise clients. Ivascyn, who oversees PIMCO's $1.9 trillion in assets, is seeking conditions that would make the debt attractive to institutional investors. The size of the proposed package—$16 billion—places it among the biggest single-asset financings in the private credit market.
The deal underscores the emergence of AI data centers as a creditworthy investment class. Until recently, large-scale infrastructure loans were mostly tied to traditional assets like pipelines or power plants. The Oracle transaction signals that lenders now view AI-driven computing capacity as a reliable source of revenue, backed by long-term contracts with creditworthy tenants. PIMCO's involvement adds weight to that view, given the firm's reputation for conservative credit analysis.
What 'seeking conditions' means
Ivascyn is not yet committed to the deal. He is negotiating terms such as interest rates, loan duration, and covenants that would protect PIMCO and its clients if the project underperforms. The process reflects the cautious approach bond investors take when entering a relatively new asset class. A final decision could come within weeks, depending on how Oracle and its partners respond to PIMCO's requirements.
Oracle and PIMCO are expected to continue discussions through the end of the quarter. If terms are agreed, the financing would likely be structured as a private placement, with PIMCO anchoring the deal and syndicating portions to other institutional investors. The outcome will be watched closely by other asset managers considering similar AI infrastructure investments.
