Oracle’s $18 billion data center debt under pressure, FT reports
Oracle logo is seen in this illustration created on September 9, 2025. REUTERS/Dado Ruvic/Illustration
Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
Sept 18 : About $18 billion in loans tied to an Oracle-leased data center in New Mexico has come under pressure, with loans quoted at 89 to 91 cents on the dollar by syndicate banks including Santander and Jefferies, the Financial Times reported on Friday.
The development comes amid concerns that growing local opposition to the project over fears it would impact water supply and air quality could derail Oracle’s massive AI infrastructure build-out, the FT report said.
The 1,400-acre “Project Jupiter” campus in Doña Ana County is part of Oracle’s broader agreement with OpenAI to provide AI computing capacity.
The project secured $18 billion in loans from a consortium of banks late last year to kick-start construction, according to media reports.
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
Efforts to sell the debt to a broader pool of investors have stalled amid concerns over Oracle’s rising borrowing and weakening creditworthiness, the Financial Times said.
Oracle, Santander and Jefferies did not respond to Reuters requests for comment.
Oracle’s corporate credit rating sits one notch above junk following a downgrade from S&P in July. Banks were now forced to hold more Oracle-linked project debt on their balance sheets than initially planed, the Financial Times said.
Oracle has been ramping up spending to finance its expansion into AI infrastructure, while its rising debt load has drawn increasing investor scrutiny.
Project Jupiter was initially set to be powered by 2.2 gigawatts of gas turbines, but the state land office blocked a request to run a natural gas pipeline to the data center, the report said.
Source: Reuters
Sign up for our newsletters
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
