Oracle Invokes Force Majeure on New Mexico AI Data Center Project Jupiter

On September 24, Oracle Corp. sent a force-majeure notice to the developer of its New Mexico AI data-center project, a unit of Blue Owl Capital. The notice lets Oracle defer lease-payment obligations if the campus, dubbed Project Jupiter, does not become operational by its 2028 target. The announcement coincided with a roughly 5 % drop in Oracle’s share price and similar declines for Blue Owl Capital and Bloom Energy, the power-system supplier.

Oracle Shares Slide After Report It Sent “Force Majeure” Notice Over Its New Mexico AI Data Center

Project Jupiter is a centerpiece of the Stargate AI-infrastructure initiative announced at the White House with President Donald Trump, OpenAI, SoftBank Group and Oracle. The campus occupies about 1,400 acres in Doña Ana County, New Mexico, and will host four hyperscale data-center buildings, an on-site micro-grid, battery storage and a desalination plant. Planned power capacity is up to 2.45 GW, enough for roughly 1.8 million homes, supplied by Bloom Energy solid-oxide fuel cells running on natural gas.

Oracle Sends 'Force Majeure' Notice on New Mexico Data Center, Shares Slide 4% — BigGo Finance

Financing combines industrial-revenue bonds, equity from Blue Owl Capital and a $18 billion loan consortium of roughly 20 banks. The overall cost ceiling has been cited as $165 billion, with an initial $50 billion spend projected over the first five years. The venture also includes a compute contract worth about $300 billion for OpenAI.

Oracle Issues Force Majeure Notice on New Mexico AI Data Center, Shares Tumble in Premarket Trading — BigGo Finance

• Share-price impact: Oracle ? -5 %; Blue Owl Capital ? -4 %; Bloom Energy ? -6 % (multiple market reports).

Oracle Moves to Limit Risk on Flagship AI Data Center

• Power design: 2.45 GW capacity, sufficient for ~1.8 million households.

Oracle Moves to Limit Risk on Flagship AI Data Center

• Pipeline: A 17-mile natural-gas line (“Green Chile Project”) required to feed the fuel cells has been delayed to February 1 2027 after repeated right-of-way rejections.

Oracle triggers force majeure on massive ’Project Jupiter’ data center

• Loan pricing: Project-loan quotes fell to 89–91 cents on the dollar as of September 18.

Oracle Issues Force Majeure Notice on New Mexico AI Data Center, Shares Tumble in Premarket Trading — BigGo Finance

• Debt exposure: Oracle’s broader AI commitments involve more than $100 billion of corporate debt, with $18 billion tied directly to Project Jupiter.

Oracle Stock Plunges as ‘Force Majeure’ Notice Raises New Data Center Concerns

A corporate spokesperson said the force-majeure notice is a precautionary step and did not indicate an intention to abandon its role as anchor tenant.

Oracle Moves To Protect Its Data Center Deal In New Mexico

Sources differ on the total projected cost: some cite a $165 billion ceiling, others reference an initial $50 billion investment plus a $300 billion compute contract with OpenAI. The exact amount of debt allocated to the project is also variably reported as $18 billion in loans versus broader corporate borrowing exceeding $100 billion. Independent verification of the force-majeure notice’s terms remains limited.

Oracle Issues Force Majeure Notice on New Mexico AI Data Center, Shares Tumble in Premarket Trading — BigGo Finance

• “This notice does not change the financial commitments to this multi-year project,” — Blue Owl Capital

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• “Force-majeure notices are commonplace in developments of this scale and are often used to preserve contractual rights among project partners.” — Oracle

Reuters

• February 1 2027: Commissioning of the natural-gas pipeline, a critical milestone for power delivery.

Oracle Moves to Limit Risk on Flagship AI Data Center

• November 23: A pending air-permit decision will test the project’s regulatory compliance.

Oracle Shares Slide After Report It Sent “Force Majeure” Notice Over Its New Mexico AI Data Center

• Ongoing monitoring of loan-pricing trends and further statements from Oracle and Blue Owl will shape investor expectations for the 2028 launch timeline.

CNBC