Oracle (ORCL) stock rose a further 7% on Friday after approval to build its next Data Center in conjunction with OpenAI was granted. Michigan regulators unanimously approved a request from utility DTE Energy Co. to power a massive data center development planned by Oracle and OpenAI. While ORCL stock has dropped 14% in the past month, the new data center coming online could fuel a stock rebound.

Oracle (ORCL) shares fell after its largest data centre partner, Blue Owl Capital, said it will not back a $10B deal for Oracle’s next facility. Blue Owl had previously been in discussions with lenders and Oracle about investing in the planned 1 gigawatt data centre to serve OpenAI in Saline Township, Michigan. However, sources close to the deal tell the Financial Times that the agreement will not go forward after negotiations stalled. Thankfully, the Michigan regulators have still given the project a green light.

The agreement between DTE and Oracle would include minimum monthly charges and a termination fee, according to a DTE filing. Sources told Bloomberg News the developers are helping to finance the project with a roughly $14 billion debt deal. DTE shares were down 0.9% on Friday, while Oracle rose with the broader market.

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According to Oracle, the data center will deliver economic benefits and tax revenue for Michigan schools and townships. The regulatory approval ensures Michigan customers will be protected from rate hikes, it said in a statement.

Furthermore, Oracle’s stock also saw the Friday rally following a joint venture agreement with TikTok’s parent company, ByteDance. This partnership positions Oracle as a key player in data security for TikTok’s US operations, enhancing its cloud business amidst a volatile market environment. At press time, ORCL is trading in the middle of its 52-week range and below its 200-day simple moving average.