Oracle invokes ‘force majeure’ on data center project

The Austin-based tech company’s massive AI infrastructure push just hit another bump.

Its shares fell more than 3% Thursday after the company issued a “force majeure” notice tied to a major data center project in New Mexico, adding fresh uncertainty around costs and construction.

The company warned the project developer that contract payments could be delayed if it isn’t online by 2028, Bloomberg reported yesterday.

Project Jupiter, a key facility under the broader Stargate AI initiative, faces delays amid local opposition.

Stargate is a $500 billion effort to build data centers for OpenAI that President Donald Trump announced with the CEOs of OpenAI and Oracle last year.

The financing makes the situation particularly important. Project Jupiter has about $18 billion in loans from a group of banks, while Blue Owl Capital has committed roughly $3 billion in equity. Oracle is responsible for the project’s debt costs.

The debt has recently traded at about 89 to 91 cents on the dollar, signaling increased investor caution.

Powering a giant
Project Jupiter spans about 1,400 acres and is designed to support more than 2.4 gigawatts of capacity. Bloom Energy is expected to provide power through fuel cells.

But getting the facility running has not been straightforward. Regulatory hurdles, local opposition, and environmental concerns have slowed development. A natural-gas pipeline intended to support the site has also faced permitting delays.

Oracle says it's on track
Despite the concerns, Oracle said the project remains on schedule and reaffirmed its commitment to New Mexico. Blue Owl also said the notice does not change Oracle’s financial commitments to the multiyear project.

Still, investors are watching closely as Oracle takes on billions of dollars in debt to build out its AI infrastructure.