A New Mexico AI Campus Hits a Snag
A large data center project tied to Oracle and Blue Owl is facing a potential one-year delay, putting a spotlight on the financial and operational risks behind the AI infrastructure boom. The campus, known as Jupiter, is being developed by a Blue Owl unit, STACK Infrastructure, to support AI infrastructure linked to OpenAI.
Oracle has issued a force majeure notice related to possible delays at the site. People familiar with the matter told Reuters that securing enough power for the facility was a central concern.
Why Power Is the Bottleneck
AI data centers consume vast amounts of electricity, making reliable power access a critical part of infrastructure planning. When power contracts or grid connections slip, construction timelines and expected returns can move with them.
Billions in Equity and Debt at Stake
Blue Owl has roughly $3 billion of equity invested in the project, according to a person familiar with the terms cited by Reuters. Oracle is responsible for covering the project’s debt costs. A delay of about a year could affect when the facility becomes operational and when project-linked returns begin to scale.
Investors Scrutinize Contract Protections
The situation is being watched across the AI infrastructure financing market. Bankers and investors are reviewing how contracts allocate risks from unexpected delays. Lenders are also looking more closely at how AI infrastructure risks are shared, even as demand for computing capacity remains strong. Higher U.S. interest rates are adding pressure to financing economics.
A Wider Ripple Effect
The delay has reportedly influenced discussions around other proposed data center financings, including an Ohio project involving SB Energy and OpenAI. That suggests the Oracle-Blue Owl case could become a reference point for how the market prices and structures large AI infrastructure deals.
The takeaway: AI’s buildout is not only a technology race. It is also a test of power procurement, construction execution and financial risk management.