Power approval threatens to delay Oracle's Wisconsin AI datacenter past 2027

Aterio sees delivery slipping into 2028; force majeure notice clouds New Mexico project

By LineZotpaper

Published3 October 2026

Read Time2 min

Oracle's Wisconsin AI datacenter could miss its planned 2027 start date because the transmission infrastructure needed to power it is awaiting regulatory approval, research firm Aterio has warned, as separate reports emerge of a force majeure notice on a related project in New Mexico.

Project Lighthouse, being developed by Vantage in Port Washington with Oracle as tenant, faces a real risk of slipping beyond Oracle's target of delivering capacity to customers in the second half of next year, according to research firm Aterio.

The immediate obstacle is American Transmission Company's (ATC) application to the Public Service Commission of Wisconsin (PSC) for approval to build the campus's grid connection. The PSC closed the original case after withdrawing its finding that the application was complete; ATC refiled in September, restarting the approval process.

"The problem is power. The campus cannot run until ATC connects it to the grid, and ATC cannot start building until the PSC approves its application," Aterio said.

ATC is planning more than $2 billion in transmission infrastructure tied to datacenter developments across Wisconsin, ranging from high-voltage power lines and substations to upgrades of existing facilities.

Aterio's base case puts partial power in December 2027 and full supply in October 2028. An extended regulatory review could push those dates to June 2028 and April 2029. Even December 2027 power delivery would leave little room for testing and commissioning before Oracle's deadline, with the campus's load expected to ramp up mainly from the first quarter of 2028.

The campus is rated at 902 MW of computing load and 1.3 GW of total electricity demand. Oracle could face more than $100 million a year in financing costs to guarantee the power commitments behind the project, according to earlier reporting.

Separately, Bloomberg reported that Oracle sent a force majeure notice to a Blue Owl Capital subsidiary developing Project Jupiter in New Mexico, seeking to defer payments if the campus failed to come online as planned rather than withdraw from the project. Oracle says the development remains on schedule.

The Financial Times reported that Tencent has signed a $7 billion deal to lease around 100,000 AI processors from Oracle. For context, Oracle reported $55.7 billion in total capital expenditures for fiscal 2026, which closed at the end of May, against total revenue of $67.4 billion. Capex guidance for the 2027 financial year is up to $95 billion.

Analysis

Why This Matters

AI computing capacity is the scarce resource of the current buildout, and a slip in Wisconsin means less capacity for customers such as Tencent, which has reportedly signed a $7 billion lease for around 100,000 Oracle processors.
Oracle's capital spending is enormous and rising, with fiscal 2027 guidance up to $95 billion. Delays add financing costs and stretch a balance sheet already carrying multi-gigawatt power commitments.
Grid connection approvals are emerging as a key constraint on datacenter growth, with ATC planning more than $2 billion in Wisconsin transmission work tied to these developments.

Background

AI datacenters are among the most power-hungry buildings ever constructed, and the Wisconsin campus alone is rated at 1.3 GW of total electricity demand. The current boom in generative AI has made access to commercial power a strategic resource, and utilities and transmission operators in several regions now carry long backlogs of connection requests from datacenter developers. Where grid infrastructure lags, regulatory approval becomes the gatekeeper on whether promised capacity arrives on time.

Key Perspectives

Oracle: Says the Wisconsin development remains on schedule. Its reported response to the New Mexico project was to seek deferred payments rather than withdraw, signalling continued commitment to its largest campuses. Aterio, the research firm: Argues the regulatory record points to dates later than company guidance, and that Oracle's stretched finances, together with the force majeure notice, raise the potential for slippage on its largest campuses. Regulators and utilities: The PSC closed the original application case before ATC refiled in September, and the approval process sets the pace for construction. ATC cannot start building until the PSC approves its application, and the campus cannot run until ATC connects it to the grid.

What to Watch

The Public Service Commission's handling of ATC's refiled application and any timeline it sets for a decision.
Whether Oracle and Vantage revise their stated delivery targets for Project Lighthouse as 2027 approaches.
The outcome of the Project Jupiter payment negotiations with Blue Owl Capital in New Mexico.
Whether the reported Tencent lease for around 100,000 processors faces knock-on delays if delivery dates slip.

Sources

Power approval set to delay Oracle's Wisconsin AI datacenter — www.theregister.com - Articles