Oracle seeks to delay lease payments on New Mexico data center in Stargate buildout

September 24, 2026 at 11:46 PM2 min

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Oracle is seeking to delay lease payments on a New Mexico data center that is part of the Stargate AI buildout, after state officials denied permits for the gas pipeline needed to power the project. The delay of at least six months exposes financial backers and insurers to losses that could be dramatically higher than expected, according to Aon's Joe Peiser. Banks have lent $18 billion to build the site, with $3 billion in equity from Blue Owl.

Key Facts

Oracle is seeking to delay lease payments on a New Mexico data center that is part of the Stargate AI buildout.
State officials have repeatedly denied permits for the gas pipeline needed to power the project, delaying its progress by at least six months.
Banks have lent $18 billion to build the New Mexico site, with $3 billion in equity from Blue Owl.
Oracle carries $288 billion of lease obligations, up sixfold from the beginning of 2025.
Oracle lost more than $20 billion in stock-market value today.

The Stargate Buildout

Oracle is seeking to delay lease payments on a New Mexico data center that is part of the massive Stargate AI buildout unveiled last year by President Donald Trump. State officials have repeatedly denied permits for the gas pipeline needed to power the project, delaying its progress by at least six months. The project is part of the $288 billion of lease obligations that Oracle carries, up sixfold from the beginning of 2025.

Financial Exposure

Banks have lent $18 billion to build the New Mexico site, with $3 billion in equity from Blue Owl. The financing hinges on Oracle paying the rent in full and ideally on time. A single element falling out of place can expose financial backers and insurers to losses that are "going to be dramatically higher than anyone is currently thinking about," Joe Peiser, CEO of risk capital at insurance broker Aon, told Semafor. Oracle can defer rent but must pay the project's carry costs in the meantime, which are only slightly lower. Deferring the start of the lease extends its end date, guaranteeing longer cash flows for its financial backers.

Market Reaction

Oracle lost more than $20 billion in stock-market value today. The move appears penny-wise and pound foolish, but it recalls how disputes about collateral posting timing turned the 2008 crisis into a global catastrophe. On the national scale, demand for AI-related investments has yet to crowd out governments' ability to borrow, Kristalina Georgieva, managing director of the International Monetary Fund, said at Semafor's Next 3 Billion event.