Oracle is seeking to protect itself from financial penalties if its data center in New Mexico, known as Project Jupiter, does not open on time in 2028. The request for payment protection has arisen amid a growing list of issues: permit denials, environmental lawsuits, a credit rating downgrade, and construction delays that have already pushed back timelines by at least seven months.
Project Jupiter occupies about 1,400 acres in Dona Ana County near Santa Teresa. The plan includes four data center buildings and a local microgrid to power OpenAI's AI workloads. The developers are Stack Infrastructure and BorderPlex Digital Assets, with construction starting in September 2025. As of early September 2026, the project is approximately 26% complete, and the first phase is behind schedule by at least seven months.
The $18 billion credit package was trading at 89–91 cents on the dollar by September 2026. Oracle's credit rating has fallen to BBB-, just one notch above junk status. The initial plan relied on natural gas, but permit applications for the pipeline were denied. Oracle has switched to Bloom Energy fuel cells with a target capacity of 2.45 GW. Associated pipeline services have been postponed until at least February 2027. The New Mexico Supreme Court lifted key permit suspensions on September 17, 2026.
Oracle is essentially hedging the risk of delays and emphasizes the phased rollout of the site: parts of the campus may become operational gradually. Project Jupiter underpins Oracle's agreement with OpenAI worth over $300 billion. Trading the credit package at depressed prices is a key signal: the bond market is pricing in a significant likelihood that the project will not go as planned. Further rating downgrades will push Oracle into junk territory. The BBB- rating leaves virtually no margin for error.
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