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Oracle wind energy procurement and natural gas workarounds

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2026-10-09 17:59 UTC → 2026-10-10 01:20 UTC · added ~~removed~~

Oracle has entered into multiple agreements to secure over 1.7 GW of wind energy in Texas to support its expanding artificial intelligence and cloud infrastructure. These projects involve ten different installations intended to supply the Electric Reliability Council of Texas (ERCOT) grid, which powers major campuses such as the data center in Abilene. Key partners include ENGIE, Clearway Energy, RWE, and Scout Clean Energy. To mitigate delays caused by lagging pipeline infrastructure, Oracle is utilizing trucked compressed natural gas to power AI data centers in Utah and Texas. This strategy aims to maintain construction and early operational schedules, including work at a campus being built for OpenAI in Shackelford. The company is also considering this approach for Project Jupiter in New Mexico, where a pipeline delay has prompted a force majeure notice to the project’s developer. In New Mexico, the State Land Office has twice refused rights-of-way for an Energy Transfer pipeline, pushing the project start date to February. Reports indicate that trucking gas costs approximately four times the standard pipeline hub prices when accounting for labor, equipment, and fuel. This reliance on expensive logistics highlights the intense pressure to bring AI capacity online. However, the strategy introduces financial risks; delays in power availability could postpone revenue generation while capital expenditures continue to accumulate. Oracle reported $55.7 billion in fiscal 2026 capital expenditures, and analysts note that investors remain sensitive to any power constraints that might delay the timeline for positive free cash flow. Following reports of these power ~~constraints and potential delays to AI capacity,~~ constraints, Oracle shares experienced a decline of approximately 5.5%. ~~Institutional investor activity has remained varied; while Rhodes Investment Advisors Inc. increased its position in the third quarter, Worth Asset Management LLC significantly reduced its holdings.~~

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