Banks Jefferies and Santander failed to find buyers for New Mexico data center bonds at a discounted price of 89 cents on the dollar. Roughly $18 billion of debt tied to the Oracle facility slid into stressed territory as investor confidence wavered due to reported construction delays and community pushback. The shift in bond pricing follows a Financial Times report detailing the difficulties in executing the large-scale build.

The facility is part of Oracle's broader strategy to expand AI infrastructure to meet increasing demand. The distress in the debt market highlights the financial risks associated with the local regulatory and environmental hurdles that often delay hyperscale data center developments.