Oracle says it isn’t worried about $165 billion Project Jupiter, but investors are

Project Jupiter is a massive AI data centre campus near Santa Teresa in Doña Ana County, New Mexico. It is one of the flagship Stargate sites being built for Axiom. Oracle is responsible for developing and powering the campus under its lease arrangement. The project matters because it is designed to support large-scale AI computing.

Oracle says it is building Jupiter as part of global infrastructure, not as an isolated experiment. The company treats it as one of 30 to 40 data centre projects in development each quarter. The campus will use a private microgrid powered by Bloom Energy fuel cells running on natural gas.

The project is also tied to New Mexico's economy. Oracle projects more than $13 billion in economic impact and over 3,100 county jobs once Jupiter is fully operational. However, construction is progressing faster than the approvals needed to power the site, creating a major risk for Oracle and its investors.

Project Jupiter is enormous in three different ways. Financially, it is described as a $165 billion AI data centre campus. Physically, it covers 1,400 acres near Santa Teresa in Doña Ana County. Its planned power demand is up to 2.45 gigawatts, requiring a dedicated energy system rather than an ordinary facility connection.

The campus is being built through a developer owned by STACK Infrastructure, which is owned by Blue Owl Capital. An approximately $18 billion construction loan supports the site. Oracle also covers the project's debt costs under the lease and has taken on about $125 billion in debt for its wider data centre expansion.

Those figures show why the project attracts attention beyond New Mexico. A site this large could support major AI workloads, but it also creates significant financing and permitting exposure. Construction is underway, while the power system still awaits approvals and the planned 2028 opening faces uncertainty.

Construction and power approval are separate tracks. Jupiter's buildings are being built, but its planned private microgrid has not received all the permissions needed to operate. The system would use Bloom Energy fuel cells running on natural gas and could supply up to 2.45 gigawatts.

The air-quality permit process was paused by the New Mexico Supreme Court in August and resumed after the stay was lifted in September. A permitting hearing is scheduled for December 7 in Sunland Park. The Green Chile pipeline that would supply natural gas also needs federal authorisation, and its start date has slipped to February 2027.

The New Mexico State Land Office has cancelled rights-of-way for parts of the pipeline route. These issues leave the power plan unresolved even as construction continues. Oracle says Jupiter remains on schedule, but the approvals could affect the campus's planned 2028 opening.

Oracle's force majeure notice protects it if events outside its control prevent Jupiter from opening on time. Specifically, the notice preserves Oracle's right to delay rent payments for up to three years if power problems keep the campus from opening in 2028.

Oracle sent the notice to a unit of Blue Owl Capital, which owns Jupiter's developer, STACK Infrastructure. The notice therefore addresses the financial consequences of a delayed opening. Oracle has also described force majeure notices as commonplace for developments of this size.

The notice does not resolve the power problem or guarantee a later opening. It gives Oracle additional time before rent becomes payable if approvals or infrastructure delays block operations. Oracle still says the project is on schedule. Its other stated option is to turn to the grid if the planned permit does not come through.

Investors worry because Oracle carries much of Jupiter's financial risk. Under the lease, Oracle must secure the campus's power and cover the project's debt costs. If approvals delay operations, financing expenses can continue while the facility remains unable to open as planned.

The site's roughly $18 billion construction loan has traded at stressed levels. That signals concern around the project's financial position. Oracle has also taken on about $125 billion in debt to fund its broader data centre build-out. A delay at Jupiter would therefore matter within a much larger borrowing programme.

The risk is not only technical. Oracle's shares are down more than 30% this year, and investors want details about its spending and fiscal 2030 revenue targets. At investor day, they are expected to look for updates on major data centre projects and evidence that Oracle can meet those targets as capital costs rise.

The article identifies one direct operating alternative: Jupiter could turn to the electricity grid. Mahesh Thiagarajan told county commissioners in July that the campus could use the grid if the planned permit does not come through. This would provide a path around a blocked private microgrid, although the article does not give details about capacity or timing.

The planned system is a private microgrid using Bloom Energy fuel cells powered by natural gas. That plan depends on air-quality approval and gas infrastructure. The Green Chile pipeline still needs federal authorisation, while parts of its route have lost rights-of-way from the state Land Office.

Oracle also has a contractual financial fallback. Its force majeure notice preserves the right to delay rent for up to three years if power problems delay the 2028 opening. Oracle says Jupiter remains on schedule, but the grid option and rent protection show how seriously the company is managing the approval risk.

AI data centres require large amounts of electricity because they operate powerful computing equipment at scale. The article gives Jupiter's planned demand as up to 2.45 gigawatts. That requirement makes reliable generation and delivery central to the campus, not a minor construction detail.

Jupiter's planned solution is a private microgrid using Bloom Energy fuel cells running on natural gas. Fuel cells convert the energy in fuel into electricity through an electrochemical process. A microgrid is a local power system that can supply a site directly. Oracle switched from gas turbines to fuel cells in April and says the change cuts nitrogen oxide emissions by about 92%.

The system is not yet fully cleared. Its air-quality permit process faced a court pause, and the gas pipeline still needs federal authorisation. Oracle says the campus could use the grid if the permit fails, but the article does not provide details about that alternative's capacity or cost.