WSJ Tech News Briefing · Friday, September 25, 2026
Oracle's ambitious AI data center project in New Mexico is encountering significant obstacles related to power supply, permitting processes, and local opposition. The company has reportedly signed a lease for the campus and committed to rental payments, even as it struggles to secure the necessary infrastructure and approvals. This has led to adjustments in the project's original plans, including the removal of gas turbines and diesel generators.
“Oracle's New Mexico AI data center project is facing challenges over power supply, permitting, and local resistance.”
“People with knowledge of the deal say Oracle signed an uncannible lease for an AI data center campus in New Mexico to support Open AI, committing to pay rent even without power.”
“But following community opposition, Oracle dropped plans for gas turbines and diesel generators and has struggled with state air permits.”