About US$18 billion in loans tied to Oracle’s leased Project Jupiter data center campus in New Mexico are being quoted below face value after banks struggled to sell the debt to investors.

The 1,400-acre campus in Doña Ana County is part of Oracle’s broader agreement to provide computing capacity to OpenAI.

It also sits within Stargate, a US$500 billion US AI infrastructure initiative led by OpenAI, SoftBank Group, and Oracle.

Project Jupiter has also faced local legal hurdles. The New Mexico Supreme Court on September 17 allowed the permitting process to resume.

Oracle secured the US$18 billion from a consortium of banks late last year, but concerns over the company’s heavier borrowing and weaker credit profile left banks holding more of the project debt than planned.

S&P cut Oracle to BBB-, the lowest investment-grade rung, citing elevated leverage and heavy capital spending.

Oracle is targeting as much as US$95 billion in fiscal 2027 capital expenditure.

🔗 Source: Reuters

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