Oracle Confirms OpenAI as Tenant for $165B New Mexico AI Data Center Project

Caroline Bishop
Jan 23, 2026 20:43

Oracle reveals it will deploy AI infrastructure for OpenAI at Project Jupiter, a massive data center campus backed by $165B in industrial revenue bonds.

Oracle has confirmed it will be the anchor tenant for Project Jupiter, a sprawling AI data center campus in southern New Mexico that will house infrastructure specifically for OpenAI. The announcement, made January 23, 2026, puts a major tech name behind one of the largest data center developments in U.S. history.

The project carries serious financial weight. Doña Ana County approved up to $165 billion in Industrial Revenue Bonds to support the development, led by STACK Infrastructure and BorderPlex Digital Assets. Oracle’s direct economic contributions include $360 million to the county for schools and infrastructure, plus $50 million dedicated to fixing the region’s aging water systems.

Job projections have already exceeded initial estimates. Original forecasts anticipated 750 permanent positions and 2,500 construction jobs. Oracle now expects approximately 4,000 construction jobs during development and up to 1,500 permanent roles once operational. The company says it will work with New Mexico State University and Doña Ana Community College on workforce training.

The OpenAI connection matters for the broader AI infrastructure race. With 147 active data centers globally and 64 more under construction, Oracle is positioning itself as a critical backend provider for the companies building large language models. This facility joins similar Oracle AI data centers in Texas, Michigan, and Wisconsin.

Water usage—a persistent concern for data center critics—gets addressed directly. Oracle claims its closed-loop, non-evaporative cooling system won’t draw from local water supplies after initial tank filling. Daily operational water consumption will reportedly match a typical office building, coming primarily from kitchens and restrooms.

The project isn’t without opposition. On January 21, New Mexico organizations sent a letter to the governor demanding transparency and public participation, with critics calling it a “generational disaster” over environmental concerns. The campus will run on a dedicated microgrid powered by gas turbines, though Oracle says pollution controls will exceed EPA standards by 50% and pledges to integrate renewables to meet New Mexico’s 2045 net-zero goals.

State and county governments expect over $600 million in Gross Revenue Tax payments over the project’s lifetime, according to the New Mexico Economic Development Department. Annual economic impact during construction: an estimated $384 million. Post-construction: $113 million per year in direct economic output.

For investors tracking AI infrastructure buildout, this confirms Oracle’s deepening ties to OpenAI’s compute needs—a relationship worth monitoring as both companies scale their ambitions.

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