Bloomberg Tech Investors Question Oracle’s Data Center Financing
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Dec 17, 2025 Kim Forrest, Chief Investment Officer at Boca Capital Partners, dives into the evolving memory market, highlighting Micron's strategic positioning amid the surge in AI-driven demand. She discusses rising memory prices and the pivotal role of DRAM in AI infrastructure. The conversation also touches on Oracle’s data center financing challenges and the broader implications for investors in this rapidly changing tech landscape. With insights on balancing risks and opportunities, Forrest provides a compelling view of the future of tech investments.
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Data Center Financing Sparks Investor Doubts
- Oracle's ambitious one-gigawatt Michigan data center financing raised investor anxiety when a major partner stepped back.
- Bloomberg reporting suggests lenders may be wary of underwriting long-dated AI infrastructure commitments.
Leases Shift Huge Future Obligations Off Books
- Renting data-center capacity via long-term leases shifts massive future obligations off balance sheets.
- Oracle disclosed roughly $250 billion of lease commitments over the next 20 years tied to this strategy.
Scale Makes Oracle's Pivot Riskier
- Oracle's cloud pivot is large relative to its company size because it was primarily a software firm.
- That makes its infrastructure spending a higher percentage of corporate resources than for bigger hyperscalers.