Oracle's Wisconsin AI datacenter could miss 2027 target as grid approval lags

Oracle's planned AI datacenter campus in Wisconsin could miss its target of delivering capacity to customers in the second half of 2027: the transmission infrastructure needed to power it is still awaiting regulatory approval.

The regulatory bottleneck

The site, Project Lighthouse, is being developed by Vantage in Port Washington, Wisconsin, with Oracle as its tenant. Research firm Aterio warns the campus faces a real risk of slipping beyond that target.

The grid connection hinges on an application by American Transmission Company (ATC) to the Public Service Commission of Wisconsin (PSC). The regulator closed the original case after withdrawing its finding that ATC's application was complete, and the utility refiled in September, restarting the approval process. ATC plans more than $2 billion in transmission projects tied to datacenter developments across the state.

"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.

Timeline scenarios

Aterio's base case puts partial power at the site in December 2027 and full supply in October 2028. Its earliest scenario (partial power October 2027, full supply August 2028) is highly unlikely. An extended regulatory review could push them to June 2028 and April 2029.

Even the December 2027 delivery leaves little room for testing and commissioning before Oracle's deadline. Aterio notes a datacenter does not enter service as soon as grid power arrives: each building's electrical and cooling systems must be energized, tested and commissioned before they can carry customer load, so campus demand is expected to ramp up mainly from the first quarter of 2028.

Financing costs and New Mexico

The Register has reported Oracle could face more than $100 million a year in financing costs to guarantee the power commitments behind the campus, rated at 902 MW of computing load and 1.3 GW of total demand.

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

Aterio argues the regulatory record "points to the potential for dates later than company guidance," and Oracle's stretched finances, together with the New Mexico notice, raise slippage risk at its largest campuses.

The Financial Times separately reported Tencent signed a $7 billion deal to lease around 100,000 AI processors from Oracle. Oracle's capital expenditures were $55.7 billion in fiscal 2026, which closed at the end of May, on revenue of $67.4 billion, with capex guidance of up to $95 billion for fiscal 2027.