Oracle's AI Data Center Buildout Faces Delays Amid Pipeline Issues
Oracle Corp.'s (ORCL) data center expansion in New Mexico has been delayed due to issues with the natural gas pipeline required for power. Co-CEO Clay Magouyrk acknowledged that expecting all projects to meet deadlines is unrealistic and emphasized Oracle's phased approach, which helps mitigate revenue impacts from individual delays. The Stargate project, part of a partnership with OpenAI, was affected when New Mexico’s State Land Office denied permits twice for the pipeline. In response, Oracle plans to use Bloom Energy Corp.'s fuel cells as an alternative power source while awaiting resolution. Magouyrk described this solution as environmentally friendly and viable in the interim. Despite these challenges, Oracle delivered strong first-quarter results with earnings of $1.92 per share—beating estimates—and raised its full-year revenue guidance above expectations.
Tickers: $ORCL
Topics: construction challenges data center delays Oracle infrastructure