Oracle Faces $7 Billion Collateral Hurdle for Wisconsin Data Centre

Project Jupiter is Oracle’s planned large-scale AI data center campus in Doña Ana County, New Mexico. In April, Oracle and developer Yucca Growth Infrastructure switched the project’s power design from gas turbines and diesel generators to a Bloom Energy fuel-cell microgrid capable of supplying as much as 2.45 gigawatts. The change lowers expected emissions and water use, but the fuel cells still require natural gas, making a dedicated pipeline critical to the campus’s deployment schedule.

The New Mexico State Land Office on July 14 again rejected Energy Transfer’s request to run 0.6 mile of the proposed 17-mile, $60 million Green Chile pipeline across state trust land. The setback raised doubts that key power infrastructure would meet an August 15 target and increased the risk of delayed Bloom orders and revenue. Bloom shares fell 7.2% to $199.49 in July 20 morning trading, while Oracle dropped 3.5% to its lowest level since April 2025.

Oracle is expanding AI data centers for customers including OpenAI, taking on substantial debt to finance costly servers, chips and power infrastructure. Such assets have long payback periods. If major customers delay payments or decline to renew contracts, capacity could sit idle, while debt and depreciation costs would directly weigh on earnings.

In a rare disclosure in its latest annual report, Oracle warned that the related data center investments might not pay off, although the filing did not specify the exact value of the assets at risk. The disclosure has prompted the market to reassess Oracle’s AI expansion strategy and customer-concentration risk. Oracle shares plunged 40% in June this year, reflecting investor concerns about cash flow and its ability to service debt.