Banks Mark Down Oracle’s $18B Data Center Loans Amid Stalled Sales

Banks are reportedly marking down about $18 billion in loans tied to Oracle’s Project Jupiter data-center campus in New Mexico to 89–91 cents on the dollar as efforts to sell the debt to additional investors stall. The 1,400-acre project, linked to Oracle’s agreement with OpenAI and the broader Stargate AI infrastructure initiative, faces concerns over Oracle’s rising debt, weakening credit metrics and the financial risks of rapidly expanding AI capacity. Oracle’s credit rating is one notch above junk, leaving banks including Santander and Jefferies holding more project debt than originally expected. The campus also faces local opposition over potential effects on water supplies and air quality, while a state land office blocked a request for a natural-gas pipeline needed for its planned power infrastructure.