Oracle's $18 Billion Data Center Debt Under Pressure: FT
Syndicate banks have been left holding more of the project debt as investors question Oracle’s borrowing and credit rating.
- On Friday, about $18 billion in loans tied to an Oracle-leased data center in New Mexico came under pressure, with syndicate banks including Santander and Jefferies reporting the debt trading at 89 to 91 cents on the dollar.
- The 1,400-acre Project Jupiter campus in Ana County is part of the $500 billion Stargate initiative led by OpenAI, SoftBank Group, and Oracle; the project secured $18 billion in loans late last year to build AI infrastructure.
- As Oracle ramps up spending to finance AI infrastructure expansion, rising debt loads have drawn investor scrutiny, and banks now hold more Oracle-linked project debt on their balance sheets than initially planned, the Financial Times reported.
- Oracle's corporate credit rating sits one notch above junk following a July downgrade, while efforts to sell the debt to a broader pool of investors have stalled amid concerns over weakening creditworthiness.
- Oracle forecast up to $95 billion in capital expenditure for fiscal 2027, expecting up to $25 billion in customer repayments; the company, Santander, and Jefferies did not respond to Reuters requests for comment.
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Oracle's $18 billion data center debt under pressure: FT
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.
Oracle's $18 billion data center debt under pressure, FT reports
Oracle Stock Faces Monday Test as $18 Billion Data-Center Loans Slip to 89–91 Cents
Warsaw, September 20, 2026, 09:30 (CEST) $18 billion of Project Jupiter loans were quoted at 89–91 cents.Oracle closed Friday at $147.61, down 1.98%, before the report appeared.Quarterly capital spending exceeded operating cash flow by about $5.4 billion. Oracle Corporation (NYSE:ORCL) shares face a fresh financing test Monday. A report said $18 billion of data-center loans…
Financial Times: Oracle’s $18bn data centre debt under strain amid local pushback
Financial Times: Oracle’s $18bn data centre debt under strain amid local pushback. “About $18bn of loans tied to a data centre leased to Oracle in New Mexico slid into stressed territory on Friday, highlighting investors’ fear that increasing local backlash will derail the tech group’s massive AI infrastructure build-out.”
Oracle Data Centre Loans Face Mounting Pressure
An $18 billion loan package tied to an Oracle-leased data centre in New Mexico has reportedly come under pressure, with syndicate banks including Santander and Jefferies quoting the loans at 89 to 91 cents on the dollar. This development, first reported by the Financial Times, arises amid growing local opposition to the ambitious "Project Jupiter"
Oracle's $18 billion data center loan runs into trouble, report says - Hello Entrepreneurs
New Delhi: Oracle is up for some fresh cash woes and they have a big data center project in New Mexico that could cost them heavily. Several reports that banks now have the loans attached to this project at a premium cost of 89-91 cents on the dollar, reflecting an increase in risk as a […] <p>The post Oracle’s $18 billion data center loan runs into trouble, report says first appeared on Hello Entrepreneurs.</p>
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