Oracle invokes ‘force majeure’ for Project Jupiter data center in Doña Ana County

Oracle (ORCL) invoked force majeure for its $165B Jupiter data center in New Mexico, citing delays due to regulatory hurdles and opposition. The project, developed by Blue Owl Capital (OWL) and powered by Bloom Energy (BE) fuel cells, is crucial for AI growth. Oracle's shares are down 55% since January 2025, and its credit rating is near junk status. Delays could impact AI ecosystem and other hyperscalers' projects.

Oracle (ORCL) sent a force majeure notice to Stack Infrastructure regarding Project Jupiter, a New Mexico data center, due to potential delays. Oracle seeks to defer payments if the 2028 opening is missed. The project, financed by 20 banks with an $18B loan, is part of the Stargate AI infrastructure initiative. ORCL shares fell 4% premarket, along with other involved companies. The notice highlights execution risks for Oracle's AI projects.

Oracle shares dropped 4% after sending a force majeure notice for its $18B Project Jupiter data center, seeking cost protection if delayed. The project faces financing pressure, with loans quoted at 89-91 cents on the dollar. Oracle reported Q1 FY2027 revenue of $19.3B, up 30%, with cloud infrastructure revenue doubling. The company has $125B in borrowings and $288B in lease commitments for data centers. Oracle aims to raise $40B in FY2027 via debt and equity.

Oracle sent a force majeure notice to Blue Owl Capital regarding Project Jupiter, an AI data center in New Mexico, but stated the project remains on schedule. Blue Owl confirmed the notice but said financial commitments remain unchanged. Oracle shares fell 4% amid concerns about AI infrastructure expansion. Analysts noted increased risk of delays, which could impact revenue. Oracle's Q1 capital expenditures were $28.5B, with a forecast of $90B-$95B for fiscal 2027.

Oracle (ORCL) shares fell 3.6% after sending a force majeure notice to the developer of its New Mexico data center, Project Jupiter, delaying payments if the 2028 completion is missed. The facility is part of Oracle's AI infrastructure and has faced regulatory and environmental hurdles. Oracle affirmed the project is on schedule and won't impact fiscal 2027 guidance. The stock is down 28.6% YTD, trading at $139.59.

Oracle's stock fell over 5% after invoking a force majeure clause on a New Mexico data center project, despite the company stating the project remains on schedule. The Nasdaq Composite Index also declined, with the 10-year Treasury yield near 5.15%, its highest since 2007. The market is watching Oracle's explanation and the impact on AI spending.