AI data-center projects from Oracle, Broadcom's data-center division (BE), and Applied Optoelectronics (APLD) are facing delays while an IO Fund analysis highlights power, not demand, as the binding bottleneck.

AI data center developers face a new critical bottleneck: securing permits, fuel supply, and local approvals is now as essential as power itself for turning planned capacity into operating facilities.

Investment research firm IO Fund highlighted Oracle Corp.'s Project Jupiter in New Mexico as a case study. On September 24, Oracle issued a force majeure notice to Blue Owl's STACK Infrastructure, allowing it to protect itself contractually if the project fails to launch as planned in 2028. Oracle later clarified that the notice "do[es] not, by themselves, establish a project delay."

Project Jupiter is a 2.45-gigawatt campus that forms part of the Stargate AI infrastructure initiative. The project faces multiple hurdles: a natural-gas pipeline has had its expected in-service date pushed to February 1, 2027, while the New Mexico Environment Department's deadline for the Bloom-powered microgrid permit is November 23. Land access remains a further constraint.

IO Fund identified the core issue: "The new bottleneck is permission." Investors should focus instead on "permissioned megawatts"—capacity with the power, financing, approvals and customer commitments needed to actually operate. As the firm concluded, "Power, not demand, is becoming the bottleneck."

Bloom Energy's fuel-cell technology helped Oracle move Project Jupiter away from the grid queue, but the system still depends on natural gas reaching the site and receiving the necessary air permit. The companies expanded their planned capacity to 2.45 GW in April, and Oracle received a $400 million warrant from Bloom.

Applied Digital faces a similar execution challenge. The company had 1,410 megawatts of contracted critical IT load across five campuses as of May 31, representing about $36.2 billion in initial contracted revenue, but only $99.8 million of fiscal 2026 revenue came from AI data center base rent. Long-term leases protect Applied Digital from utilization risk once facilities are operational, but they do not eliminate construction delays, financing costs, permitting risks or cost overruns.

Oracle shares closed 3% higher Friday, Bloom Energy shares rose more than 4%, while Applied Digital shares gained over 5%. Year-to-date, ORCL stock is down 27%, BE stock is up 233%, and APLD stock is up 4%.