Oracle rejected concerns over delays to its large-scale artificial intelligence data center construction projects. While acknowledging uncertainty over securing grid access and construction schedules, it expressed confidence that modular construction would enable data centers to begin operating on time.
Rob Charnocki, vice president of storage and data services at Oracle Cloud Infrastructure, made the remarks during a press interview at Oracle AI World 2026 in Las Vegas on October 27, local time, in response to questions about Stargate construction progress and concerns over permitting delays.
Charnocki explained that existing power grids were not designed to adequately support the electricity demand of large AI data centers. Oracle says it is responding by using various electricity supply technologies, including turbines, fuel cells and solar power.
“Every construction project can have schedule changes, just like software development,” Charnocki said, while adding, “I do not think there are any substantive concerns about the current progress.”
Charnocki added, “There has been more media attention than necessary, and not everything has been sufficiently grounded in facts,” and said, “We are confident that we can bring data centers online on time.”
Charnocki identified modular data center construction and access to diverse power sources as Oracle's competitive advantages. The explanation was that flexibility to adjust construction speed according to electricity availability and construction conditions supports rapid data center deployment.
“I think we are bringing data centers online faster than any other company,” Charnocki said. “Modular construction and a variety of power supply options differentiate OCI.”
Stargate is a U.S. AI infrastructure project launched by Oracle, OpenAI, SoftBank and others in January 2025. It targets investment of up to $500 billion over four years. Oracle and OpenAI also agreed in July 2025 to develop an additional 4.5 GW of data center capacity.
The first Stargate data center in Abilene, Texas, is being brought online in stages. According to materials Oracle released in September 2026, six of the facility's eight buildings had been handed over to customers. This represents 618 MW, or about 75% of total capacity.
By contrast, Project Jupiter in New Mexico has faced disputes over electricity supply and environmental permits. In September 2026, Reuters reported that Oracle had sent a force majeure notice to the project developer in anticipation of possible power supply delays. Oracle dismissed the concerns, saying permits for power generation facilities and construction of data center buildings were separate matters.
Questions about data center project progress continued during a global media question-and-answer session following a spotlight session on powering the next generation of enterprise AI. Mahesh Thiagarajan, president of Oracle's OCI division, said of Stargate, “The project is progressing smoothly,” adding, “We are bringing data centers online one after another.”
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Thiagarajan also emphasized that Oracle could meet its planned data center startup schedules in terms of electricity supply. Oracle is using uninterruptible power supplies and software-based control technology to moderate fluctuations in electricity loads, while addressing shortages of key components through measures such as advance orders.
“There may be supply difficulties for components such as memory, where expanding production capacity takes a long time,” Thiagarajan said. “For transformers and similar equipment, it is important to secure the required quantities through advance discussions with suppliers.”
Original Korean article: ZDNet Korea
English brief by Korea Wind Intelligence, koreawindintel.com
