Oracle Seeks Payment Protection as New Mexico Data Center Project Hits Snags

Oracle is seeking payment protection for its massive New Mexico data center project, Project Jupiter, as it faces numerous challenges that have pushed timelines back by at least seven months. The project, which aims to provide power for OpenAI's AI workloads, has been plagued with issues including permit denials, environmental litigation, and construction delays.

The $18 billion loan package arranged for the project has started trading at 89 to 91 cents on the dollar, indicating a growing concern about Oracle's ability to manage construction risks and its expanding debt load. The company's credit rating has also taken a hit, dropping to BBB- from mid-September 2026, one notch above junk status.

To mitigate these risks, Oracle is requesting payment protection, which would shield it from financial penalties if the project doesn't open on schedule in 2028. This comes as the company emphasizes phased site rollouts, suggesting that even if the whole campus isn't ready by 2028, portions of it could come online in stages.