The Santa Teresa data center campus relies on an on-site natural gas microgrid delivering up to 2.45 gigawatts, yet critical pipeline infrastructure and air quality permits face ongoing delays and legal scrutiny. Oracle has pointed out that the facility could alternatively tap the local utility grid if environmental clearances fall through. The company is currently carrying approximately $125 billion in total debt to finance its data center expansions. Investors are closely monitoring whether these mounting capital costs will jeopardize long-term corporate revenue targets.
Key points
Oracle bears the contractual responsibility for securing energy and covering debt service…: Oracle bears the contractual responsibility for securing energy and covering debt service, concentrating significant financial risk on the balance sheet.
Management insists the massive facility remains on schedule for its 2028 debut despite re…: Management insists the massive facility remains on schedule for its 2028 debut despite regulatory obstacles and an upcoming December air permit hearing.
Markets remain skeptical of corporate reassurances as rising infrastructure expenditures…: Markets remain skeptical of corporate reassurances as rising infrastructure expenditures threaten to impact Oracle's fiscal 2030 financial projections.
Sources checked by our analysis pipeline: 1
Oracle is brushing off the growing worries around Project Jupiter, its $165 billion AI data centre campus in New Mexico. Speaking at Oracle AI World in Las Vegas on October 27, Mahesh Thiagarajan, Oracle's president of Cloud Infrastructure, said, "We're actually not too worried about what we're doing because I think we're building global infrastructure." He also played down the project's weight, calling it just one of the 30 to 40 data centre projects Oracle has in development each quarter.
The calm comes at a tense moment. Last month, Oracle sent a force majeure notice to a unit of Blue Owl Capital, which owns the project's developer, STACK Infrastructure. The notice preserves Oracle's right to delay rent by up to three years if power problems keep the campus from opening on time in 2028. The roughly $18 billion construction loan behind the site has since traded at stressed levels, and Oracle shares are down more than 30% this year.
Project Jupiter's power plan is still waiting on approvals
Located near Santa Teresa in Doña Ana County, the 1,400-acre campus is…
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