Oracle's $18 billion data center debt under pressure, FT reports
Oracle's data center debt is under pressure amid rising concerns over AI infrastructure costs. S&P downgraded Oracle to BBB-, one notch above junk status, as total debt approaches $167 billion. Global AI-related debt issuance plummeted from $113 billion in June to $23 billion in September. Market skepticism grows over AI revenues justifying massive infrastructure costs.
Listen to Live Briefing
Real-time synthesized voice briefing · Live Feeds Desk
- ✓ S&P has downgraded Oracle to BBB-, one notch above junk status.
- ✓ Global AI-related debt issuance fell from $113 billion in June to $23 billion in September.
- ✓ Oracle's total debt approaches $167 billion.
- ✓ Banks have struggled for six months to offload $38 billion in AI data center debt.
What changed
Concerns over AI infrastructure debt and spending have deepened, with CoreWeave's credit slide and a nationwide backlash against US data centers contributing to Wall Street doubts.
Live updates
-
Oracle's $18 billion data center debt under pressure
Oracle's data center debt is under pressure amid rising concerns over AI infrastructure costs. S&P downgraded Oracle to BBB-, one notch above junk status, as total debt approaches $167 billion. Global AI-related debt issuance plummeted from $113 billion in June to $23 billion in September. Market skepticism grows over AI revenues justifying massive infrastructure costs.
Why it matters
The AI industry faces increasing scrutiny over its massive infrastructure costs and debt. Major AI firms like Oracle, Meta, and CoreWeave are experiencing significant stock price drops and credit rating downgrades. Rising inflation and US interest rates have investors worried about borrowing hurdles faced by less profitable firms within the sector.
What is confirmed
- S&P has downgraded Oracle to BBB-, one notch above junk status.
- Global AI-related debt issuance fell from $113 billion in June to $23 billion in September.
- Oracle's total debt approaches $167 billion.
- Banks have struggled for six months to offload $38 billion in AI data center debt.
- Data center projects are stalling due to permitting issues and rising costs.
Still unconfirmed
- The increasing number of data centers are being delayed by permitting issues.
What to watch next
- Oracle's future credit rating assessments
- Developments in AI infrastructure costs and revenues
- Decisions on data center projects and financing
confidence 85%Sources used for this update (9)
- www.businesstimes.com.sg — Cracks emerge in AI borrowing boom as CoreWeave, Oracle and SoftBank debt worries grow - The Business Times
- coinedition.com — U.S. AI Data Center Projects Stall as Debt Risks Grow
- economictimes.indiatimes.com — oracle bond downgrade: Latest News & Videos, Photos about ...
- www.ai-supremacy.com — The Great AI Financing Push-Back - by Michael Spencer
- en.sedaily.com — AI Credit Fears Deepen as Data Center Backlash Spreads ...
- economictimes.indiatimes.com — syndicated loans: Latest News & Videos, Photos about ...
- www.useluminix.com — AI Debt: Hyperscaler Borrowing and Credit Risk 2026
- wallstsmart.com — ORCL Balance Sheet 2026 | Oracle Corporation Total Assets ...
- wallstsmart.com — ORCL Income Statement 2026 | Oracle Corporation Financials ...
-
S&P Downgrades Oracle as AI Infrastructure Debt Climbs
S&P has downgraded Oracle to BBB-, leaving the company one notch above junk status as artificial intelligence capital expenditures push total debt toward $167 billion. Banks have struggled for six months to offload $38 billion in AI data center debt, reflecting a sharp decline in investor appetite. Global AI-related debt issuance plummeted from $113 billion in June to $23 billion in September. Market skepticism is rising over whether AI revenues can justify these massive infrastructure costs, with bonds tied to Oracle, Meta, and CoreWeave falling amid construction delays and higher borrowing costs.
Why it matters
The shift reflects broader market anxiety similar to the dot-com era, where investors fear high interest rates and inflation will hinder less profitable AI firms. Rising 10-year Treasury yields and Federal Reserve signals for further rate hikes have increased pressure on credit sectors.
What is confirmed
- Banks arranged $38 billion in AI data center financing but struggled for months to find buyers.
- Global AI-related debt issuance dropped from $113 billion in June to $23 billion in September.
- S&P downgraded Oracle to BBB- as AI capital expenditures pushed debt toward $167 billion.
Still unconfirmed
- Bonds tied to projects backed by Oracle, Meta, and CoreWeave are falling due to construction delays and uncertain returns.
- CoreWeave and Dell Technologies lost approximately $80 billion in market value due to inflation and interest rate concerns.
- OpenAI's revenue performance is contributing to declines in the Nasdaq 100 and S&P 500.
What to watch next
- Federal Reserve decisions on further interest rate increases
- OpenAI revenue reports to justify infrastructure spending
- Changes in Oracle's credit rating above junk status
confidence 90%Sources used for this update (6)
- www.nytimes.com — The New York Times - Breaking News, US News, World News and Videos
- cryptoslate.com — Latest News from Global Crypto Hubs
- www.marketscreener.com — Transcript : Jefferies Financial Group Inc. - Analyst/Investor Day
- finance.yahoo.com — Banks Arranged $38 Billion in AI Debt. Finding Buyers Took ...
- startupfortune.com — S&P's downgrade leaves Oracle financing OpenAI's bet years ...
- economictimes.indiatimes.com — oracle loans News and Updates from The Economic Times - Page 1
-
Banks Struggle to Unload Oracle AI Data Center Debt as Issuance Plunges
Banks have spent six months attempting to offload $38 billion in Oracle artificial intelligence data center debt, while global AI-related debt issuance dropped nearly 80 percent from $113 billion in June to $23 billion in September, according to Morgan Stanley data reported by the Financial Times. Oracle currently sits one notch above junk status, with bonds tied to projects backed by Oracle, Meta, and CoreWeave falling amid rising borrowing costs, construction delays, and uncertain returns. Investors are questioning whether artificial intelligence revenues can justify massive infrastructure spending.
Why it matters
The broader technology sector faces a debt reality check as $4.9 trillion flows into data centers amid mounting concerns over whether returns will match expenditures. Oracle holds $288 billion in data-center leases that have not started yet, highlighting the vast scale of future financial commitments. Stalled project loans, rising credit default swaps, and thinning bond order books reflect severe investor friction.
What is confirmed
- Global AI-related debt issuance fell from $113 billion in June to $23 billion in September, according to Morgan Stanley data reported by the Financial Times.
- Oracle has signed $288 billion of data-center leases that have not started yet.
Still unconfirmed
- Oracle is rated one notch from junk.
- Bonds tied to projects backed by CoreWeave, Meta, and Oracle have fallen amid rising borrowing costs, construction delays, and uncertain returns.
What to watch next
- Whether banks successfully offload the remaining Oracle data center debt packages.
- Further updates on the progression of the Project Jupiter AI campus in New Mexico.
- Morgan Stanley data releases tracking subsequent quarters of AI debt issuance.
confidence 90%Sources used for this update (9)
- byteiota.com — AI Data Center Debt: Banks Can’t Unload the $38B Oracle Bet
- help.naver.com — Futures Flat As Oil Rebounds After Trump's "Energy Ceasefire" Unravels, Memory Stocks Slide | ZeroHedge
- section.blog.naver.com — 2026.10.09(금) 오후 12시 주요 Headline Summary — 세계 뉴스로 배우는 영어 표현
- www.wheresyoured.at — Annualized Enron Rate
- www.gate.com — AI Debt Issuance Falls From $113B to $23B While Oracle's $18B ...
- www.gate.com — AI Debt Issuance Falls 80% as Oracle Loans Trade Below Par
- www.kucoin.com — AI Debt Issuance Drops 80% to $23B, Oracle Loans ... - KuCoin
- www.useluminix.com — Oracle Debt: The OpenAI Contract and AI Data Center Loans
- www.livemint.com — AI spending vs returns: Why CoreWeave, Meta and Oracle ... - Mint
-
Oracle AI Data Center Debt Under Pressure As Financing Stalls
Oracle faces severe financial pressure as $18 billion in data center loans trade below face value amid mounting obstacles at the Project Jupiter AI campus in New Mexico. Banks including JPMorgan and MUFG are attempting to offload debt tied to Oracle as credit default swaps rise and bond order books thin out. The turbulence arrives during a broader contraction in artificial intelligence debt issuance, which fell from $113 billion to $23 billion in three months. Franklin Templeton CEO Jenny Johnson has flagged artificial intelligence debt financing as very complex.
Why it matters
The artificial intelligence infrastructure boom relies heavily on billions in debt and future commitments, leaving markets vulnerable when execution risks emerge. Hyperscaler bond sales surged from $17 billion in 2024 to $194 billion in the first half of 2026, increasing exposure across the banking sector. Global shares have simultaneously slid as rising oil prices and stubborn bond yields weigh broadly on financial markets.
What is confirmed
- Oracle-linked data center loans totaling $18 billion are trading below face value.
- Artificial intelligence debt issuance fell from $113 billion to $23 billion in three months.
- Banks including JPMorgan and MUFG are trying to offload artificial intelligence data center debt tied to Oracle.
- Franklin Templeton CEO Jenny Johnson stated that artificial intelligence debt financing is becoming very complex.
Still unconfirmed
- Project Jupiter faces a potential one-year delay due to power permit stalls, recent flooding, and an issued force majeure notice.
What to watch next
- Syndication letters and market absorption for upcoming senior-secured debt tranches
- Developments regarding the construction timeline and power permits for Project Jupiter in New Mexico
- Broader market pricing trends for hyperscaler bonds and tech sector debt
confidence 90%Sources used for this update (13)
- frankrayal.com — Oracle, Force Majeure, and the Hidden Risks Behind the AI ...
- economictimes.indiatimes.com — data center projects: Latest News & Videos, Photos about data ...
- sesamedisk.com — Hyperscaler Spending and AI Data Center - Sesame Disk
- www.marketscreener.com — Jefferies Financial Group Inc.: Valuation Ratios, Analysts ...
- stocktwits.com — Franklin Templeton CEO Jenny Johnson Reportedly Flags ‘Very Complex’ AI Debt Financing — Favors Sho....
- stocktwits.com — CVS Stock: TD Cowen Warns Of Bottom-Line Pressure For CVS Health Amid Star Ratings Setback
- www.globalbankingandfinance.com — Global Shares Slide as Oil Prices Surge and Bond Markets Face Strain
- inlevel9.com — When Chipmakers and Insurers Start Acting Like Banks · Issue #300 · INLEVEL9
- www.foreignpolicyjournal.com — Oracle (NYSE: ORCL) Issues Force Majeure Warning As Pipeline Delay Threatens $664 Billion AI Backlog
- coinpaper.com — AI Debt Issuance Falls From $113B to $23B While Oracle Loans ...
- startupfortune.com — Banks are now trying to offload the AI data center debt they ...
- www.useluminix.com — AI Data Center Financing: Who Lends and Who Bears the Risk
-
Oracle Faces AI Infrastructure Pressures
Oracle Corporation faces financial and operational pressures regarding its AI infrastructure developments, specifically involving the Project Jupiter AI data center in New Mexico. The company issued a force majeure notice allowing payment delays if the site misses milestones, while power permit stalls and recent flooding threaten the timeline of the half-built $18 billion project. Although external reports indicate a potential one-year delay, Oracle maintains that construction remains on schedule. This situation highlights rising capital expenditure tensions as bond markets tighten for lower-rated borrowers.
Why it matters
Oracle Corporation is a major multinational technology company headquartered in Austin, Texas, co-founded in 1977 by Larry Ellison, Bob Miner, and Ed Oates. The company specializes in database software, enterprise applications, cloud infrastructure, and hardware. Managing massive artificial intelligence infrastructure projects requires immense capital and reliable power access, making delays a critical financial liability.
What is confirmed
- Oracle Corporation is headquartered in Austin, Texas.
- Larry Ellison, Bob Miner, and Ed Oates co-founded Oracle in 1977.
Still unconfirmed
- The Project Jupiter data center faces a potential one-year delay due to power permit stalls.
- Oracle issued a force majeure notice for Project Jupiter due to site vulnerabilities and milestone risks.
What to watch next
- Resolution of power permit applications for the New Mexico site
- Confirmation of construction timelines from Oracle or site developers
- Bond market conditions affecting lower-rated infrastructure borrowers
confidence 80%Sources used for this update (5)
- en.wikipedia.org — Oracle Corporation - Wikipedia
- finance.yahoo.com — Oracle Corporation (ORCL) Stock Price, News, Quote & History ...
- www.virtualbox.org — Oracle VirtualBox
- en.wikipedia.org — Oracle - Wikipedia
- mylearn.oracle.com — Oracle MyLearn
-
Oracle invokes force majeure on $18 billion Project Jupiter AI campus
Oracle has issued a force majeure notice to the developer of its Project Jupiter AI data center in New Mexico, allowing the company to delay payments if the site misses key milestones. The $18 billion project is reportedly half-built as power permit stalls threaten the timeline. While some reports suggest a potential one-year delay, Oracle claims the project remains on schedule despite recent flooding at the site. The move signals growing financial pressure on AI infrastructure as bond markets tighten for lower-rated borrowers.
Why it matters
Project Jupiter is a massive AI infrastructure buildout funded by $18 billion in loans. The debt is currently trading between 89 and 91 cents on the dollar. These difficulties highlight a broader trend of funding snags and power constraints affecting the AI data center boom.
What is confirmed
- Oracle has issued a force majeure notice to the developer of Project Jupiter.
- Project Jupiter has secured approximately $18 billion in loans.
- The Project Jupiter AI data center is located in New Mexico.
- Oracle stated that flooding at the New Mexico site caused no critical damage and the project remains on schedule.
Still unconfirmed
- Project Jupiter's total value is $165 billion and it is 26% complete.
What to watch next
- Confirmation of the actual project completion date
- Court or developer challenges to the force majeure invocation
- Updates on New Mexico power permit approvals
confidence 80%Sources used for this update (13)
- www.zerohedge.com — US Futures, Treasuries Flat Ahead Of Core PCE, Micron Earnings | ZeroHedge
- finance.yahoo.com — Oracle's $18 Billion AI Project Just Hit a Major Hurdle
- www.sbcmedia.blog — Oracle’s Force Majeure Exposes Cracks in the AI Data‑Center Boom
- www.theinformation.com — Cracks Emerge in AI’s Debt-Fueled Data Center Boom
- coincentral.com — Oracle (ORCL) Stock Drops as Flood Fears Hit Its $18B AI ...
- stocktwits.com — TOST Stock Gets A DoorDash AI Test: Jefferies Breaks Down Where DashOS Could Pressure Toast
- www.technotime.net — Oracle Invokes Force Majeure on $18B ”Project Jupiter” AI ...
- finance.yahoo.com — Oracle's $18 Billion AI Data Center Just Dodged a Major ...
- stocktwits.com — AMZN Inches Higher Premarket: Amazon Reportedly Seeks To Offload $8B Of Nvidia Chips To Investors
- www.gurufocus.com — Oracle's $18 Billion AI Project Just Hit a Major Hurdle
- constructionreviewonline.com — How is Oracle’s $165B Project Jupiter: On Track or Derailed?
- www.marketscreener.com — Morgan Stanley Trims Price Target on Jefferies Financial to $49 From $50, Maintains Equalweight Rating
-
Oracle's $18 billion data center debt under pressure
Oracle's $18 billion in loans for AI data centers, known as Project Jupiter, faces market pressure and trading difficulties. The debt is tied to a New Mexico data center project and is trading between 89 and 91 cents on the dollar. Co-CEO Clay Magouyrk acknowledged delays in the AI data center buildout.
Why it matters
The struggles with Oracle's data center project reflect broader challenges in the AI infrastructure expansion. The project's financing has drawn scrutiny, and local pushback has added to the concerns. Oracle's efforts to delay payments if the campus does not begin operations as planned in 2028 also added to investor worries.
What is confirmed
- Oracle's $18 billion in loans for AI data centers is trading between 89 and 91 cents on the dollar.
- Co-CEO Clay Magouyrk acknowledged that the AI data center buildout is facing delays.
- Oracle is not seeking to abandon the Project Jupiter but is attempting to delay payments if the campus does not begin operations as planned in 2028.
Still unconfirmed
- Syndicate banks, including Jefferies and Santander, are reportedly struggling to distribute the debt as syndication efforts have stalled.
What to watch next
- Oracle's Project Jupiter data center campus operational start date in 2028
- Further updates on the syndication efforts of the $18 billion debt
- Oracle's response to growing scrutiny over the financing of its AI infrastructure
confidence 85%Sources used for this update (14)
- www.thehindubusinessline.com — Sensex today | Stock Market Live Updates: Sensex, Nifty trade lower despite positive global cues, softer crude prices
- www.marketscreener.com — Oracle : Partners with Wipro to Strengthen End-to-End Pharmacovigilance Services
- www.marketscreener.com — Oracle Corporation and Co-Op Live Set the Stage for Connected Operations with Oracle Cloud Applications
- www.cnbc.com — Oracle shares drop on report it sent 'force majeure' notice about data center project
- www.insidermonkey.com — Oracle’s AI Expansion Faces a New Test as Data Center Costs Rise
- contents.premium.naver.com — AI·빅테크 투자 축소 신호 — 2026년 9월 24일
- contents.premium.naver.com — AI·빅테크 투자 축소 신호 — 2026년 9월 22일
- ca.marketscreener.com — Jefferies Financial Group Inc. Stock (JEF) - Quote NYSE- MarketScreener Canada
- www.marketscreener.com — Microsoft-Backed Anthropic, OpenAI, SpaceXAI, Google Sued Over Alleged AI Development Deal
- www.marketscreener.com — Morgan Stanley Adjusts Price Target on Jefferies Financial to $49 From $50, Maintains Equalweight Rating
- www.stockopedia.com — JEFFERIES FINANCIAL | Oracle's $18 billion data center debt ...
- ca.marketscreener.com — Jefferies quarterly profit jumps on deal surge, equities trading strength | MarketScreener Canada
-
Oracle's $18 Billion Project Jupiter Debt Trades at Discount
Oracle's $18 billion in loans for AI data centers, known as Project Jupiter, are under market pressure and trading between 89 and 91 cents on the dollar. The Financial Times reports the debt is under strain due to local pushback and project concerns. Syndicate banks, including Jefferies and Santander, are reportedly struggling to distribute the debt as syndication efforts have stalled. Co-CEO Clay Magouyrk has acknowledged that the AI data center buildout is facing delays, stating that expecting everything to stay on schedule is a "bad plan."
Why it matters
The loans fund data center expansion in New Mexico to support AI growth. This development highlights broader financing pressures within AI infrastructure chains. Market analysts note the gap between these project loans and Oracle's senior notes, which were valued at roughly 84.6 cents on the dollar as of August 31, 2026.
What is confirmed
- Oracle's Project Jupiter data center loans totaling $18 billion are trading at 89 to 91 cents on the dollar.
- Co-CEO Clay Magouyrk stated that the AI data center buildout is running into delays.
- Oracle's senior notes and other long-term borrowings had an estimated fair value of $105.7 billion on August 31, 2026.
- The Project Jupiter loans are linked to data center projects in New Mexico.
Still unconfirmed
- Syndicate banks including Santander and Jefferies are holding more project debt than planned because sales have stalled.
- Local pushback is a primary cause of the strain on the $18 billion debt.
What to watch next
- Updates on the progress of New Mexico data center construction
- Further statements from Oracle regarding the stalled loan syndication
- Changes in the trading price of Project Jupiter debt
confidence 90%Sources used for this update (20)
- Reuters — Oracle's $18 billion data center debt under pressure, FT reports
- Investing.com — Oracle data center debt comes under pressure amid project concerns - FT
- Financial Times — Oracle’s $18bn data centre debt under strain amid local pushback
- Yahoo Finance — Oracle’s AI Data Center Buildout Is Running Into Delays — Co-CEO Clay Magouyrk Says Betting on Everything Going on Time Is a ‘Bad Plan’
- FourWeekMBA — Oracle's Project Jupiter Debt Is Quoted Below Par — and the Stalled Syndication Is the Real Signal
- 富途牛牛 — Oracle's $18 billion AI loan faces sluggish distribution at a discount, highlighting pressures in AI financing chains
- Finimize — Oracle’s $18 Billion New Mexico Data Center Loans Hit A Speed Bump
- TechStock² — Oracle Stock Faces Monday Test as $18 Billion Data-Center Loans Slip to 89–91 Cents
- TradingKey — Oracle Stock Price Forecast: $18 Billion Data Center Loan Deeply Discounted, Will ORCL Continue to Fall?
- AD HOC NEWS — Oracle Corp stock slips as $18 billion AI data-center loans trade at a steep discount
- Coinpaper — What Does It Mean When Orcale $18B AI Loan Trades at 89 Cents?
- CryptoRank — Oracle’s $18B Project Jupiter Loan Is Flashing a Warning From the Credit Market
Community Sentiment: How do you assess this situation?
Voice your perspective · Real-time aggregated sentiment from the Live Feeds community