Oracle said its global data center buildout is advancing across multiple markets, with 850 megawatts of AI capacity delivered in Q1 and record new capacity brought online. Abilene has made substantial progress, while projects in Shackleford, New Mexico, and Wisconsin continue on differing timelines. Management is planning for phased delivery and execution risks, and said New Mexico and Wisconsin will not change FY2027 guidance.
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What did management say about Global data center expansion status?
Management described a broad, diversified expansion program spanning the U.S. and other markets, rather than one dependent on a single large site. Oracle delivered 850 megawatts of AI capacity in Q1, while Shackleford, New Mexico, Wisconsin, and Michigan contributed none of that quarter’s delivered capacity—evidence that other projects were supplying capacity as well.1 Management also said Q1 brought record levels of new megawatt capacity online.2
Management cautioned that a large site does not deliver all its capacity at once: it comes online in phases over multiple quarters. Oracle said it plans for execution risks, has backup options, and does not assume every project milestone will be met exactly on schedule.14 It also said some sites were ahead of schedule while others were more difficult, with those risks incorporated into forecasting.5
On the near-term financial outlook, management said the New Mexico and Wisconsin sites would not affect its previously stated FY2027 revenue or earnings guidance.5 More broadly, it said it remained confident in bringing capacity online to serve current and expected future demand.5
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Oracle says its New Mexico and Wisconsin data-center projects remain on track, with permitting and grid-readiness evolving. Management maintains that neither project will threaten the fiscal 2027 revenue outlook, supported by a diversified, phased capacity pipeline and robust RPO growth; ongoing financing and BYOH arrangements reduce direct capex exposure, though broader, multi-site execution risks remain.
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Research questionWhat is the current status of New Mexico and Wisconsin data center projects, and could delays pose a risk to the 2027 revenue guidance? As RPO grows, how confident is Oracle in securing capacity online to support future growth?
Answer outline
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Oracle’s customer prepayments, customer-provided hardware, and supplier financing can reduce how much cash Oracle must advance as RPO grows. These models change the timing and source of funding, not the need to build capacity. Management expects strong cash generation from projects after ramp-up, but gave no timeline for positive free cash flow and emphasized that infrastructure margins still depend on pricing, costs, and operating efficiency.
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