Oracle’s Project Jupiter, a massive AI data center campus in southern New Mexico, is reportedly being mothballed as financial pressures mount. The project’s $18 billion syndicated loan is trading at 89-91 cents on the dollar, a discount signaling investor concerns about whether the project will be completed. Oracle’s credit rating was downgraded to BBB- in July 2026, just one notch above junk status, contributing to the loan’s steep discount. Construction had reached roughly 26% completion by early September 2026 on the 1,400-acre campus in Dona Ana County, which had already generated nearly $80 million in tax revenue for New Mexico. The project was designed to handle AI workloads for OpenAI as part of the broader Stargate initiative, though Oracle and its partners maintain publicly that Project Jupiter remains on track.
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