OFSS Shares Fall Over 6% In Early Trade As Oracle’s $18 Billion Data Centre Loans Face Pressure

Shares of Oracle Financial Services Software (OFSS) fell 6.5% in early trade on Monday, 21 September, after a Financial Times report said about $18 billion of loans linked to an Oracle-leased data centre in New Mexico had come under pressure.

The development could put greater focus on how large data-centre and artificial intelligence (AI) infrastructure projects in India are funded, particularly as companies and lenders commit billions of rupees to build new capacity. Oracle’s stake in the Indian company is valued at about ₹70,000 crore ($7.3 billion).
At 10:44 am, OFSS shares were down 6.20% on the National Stock Exchange (NSE).

Financing Risk Comes Into Focus

The loans linked to Oracle’s Project Jupiter were being quoted at 89 to 91 cents on the dollar by syndicate banks, according to the Financial Times.

The 1,400-acre project in Doña Ana County, New Mexico, forms part of Oracle’s wider agreement with OpenAI to provide computing capacity for artificial intelligence workloads. A consortium of banks provided about $18 billion in loans late last year to start construction. However, efforts to sell the debt to a wider group of investors have stalled, the report said.

That has left banks holding more Oracle-linked project debt than initially planned. The situation has also emerged as Oracle increases borrowing to fund its AI infrastructure expansion. Oracle’s corporate credit rating is now one notch above junk after S&P downgraded it in July.

For Indian data-centre companies, the episode highlights a key issue around the current expansion cycle, including the ability to raise large amounts of long-term funding as demand for computing capacity grows.

India is also seeing a sharp increase in data-centre financing. Note that the National Bank for Financing Infrastructure and Development (NABFID) has sanctioned more than ₹3,000 crore each for at least four data-centre projects.

Power And Local Clearances Also Matter

Project Jupiter also faces concerns over water supply and air quality. The project was initially planned to use 2.2 gigawatts (GW) of gas turbines. But New Mexico’s state land office blocked a request to run a natural gas pipeline to the data centre.

That adds another consideration for similar projects in India, where large AI facilities will require substantial and dependable power, along with access to land, water and other infrastructure. Note that Karnataka’s new Sustainable Data Centre Policy 2026-2031, for instance, targets 1 GW of cumulative IT load by 2031 and places emphasis on renewable energy, water management, cooling technology and connectivity.

For Indian operators and infrastructure suppliers, Oracle’s experience therefore brings financing, power availability, project approvals and resource use into sharper focus as AI-related data-centre capacity expands.

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