Oracle May Not Be Able to Build Its Michigan Data Center After All. Should You Sell ORCL Stock Now?

Investors have been reminded lately that artificial intelligence (AI) infrastructure investments are not always straightforward. Oracle (ORCL) stock slid following mixed financial results and a sharp increase in its capital spending outlook to roughly $50 billion for fiscal 2026. Shares dropped 12% after earnings and then another 6% following reports that a key $10 billion funding plan for a new Michigan AI data center with Blue Owl Capital had stalled, raising fresh concerns about rising debt and ongoing cash burn.

This is happening even as the global data center market is projected to generate more than $527 billion in revenue in 2025, which helps explain why the biggest tech companies are moving quickly to secure capacity for AI workloads.