Oracle sends 'force majeure' notice about data center project — stock sinks 5%
Oracle has issued a "force majeure" notice for its New Mexico data center project, codenamed Project Jupiter, reportedly to delay payments if the campus doesn't come online by 2028. This move, which caused a 5% drop in Oracle's stock, is linked to setbacks including regulatory hurdles and local opposition. Blue Owl Capital, the developer, confirmed the notice does not alter financial commitments.
Oracle's stock fell 5% after it was reported that the company issued a "force majeure" notice regarding its data center project in New Mexico. The notice, confirmed by CNBC, was sent to the developer, a unit of Blue Owl Capital, which also saw its shares decline.
The project, known as Project Jupiter, is part of a larger artificial intelligence infrastructure initiative called Stargate, which involves President Donald Trump. Oracle reportedly aims to delay payments for the campus if it fails to become operational by its scheduled 2028 date. Blue Owl Capital stated that the notice does not change the financial commitments for the multi-year project.
Project Jupiter has encountered numerous challenges, including regulatory hurdles and opposition from local groups and environmental organizations. Despite these issues, an Oracle spokesperson indicated that the project remains on schedule and the company is fully committed to New Mexico. Co-CEO Clay Magouyrk previously assured analysts that Project Jupiter would not impact the company's fiscal 2027 revenue or earnings guidance. Concerns also exist over Oracle's $18 billion debt associated with the data center.