● Covered by 2 sources · 2 reportsMedium impact2 neutral
Oracle Issues Force Majeure Notice for New Mexico Data Center Project
Key points
- Oracle issued a force majeure notice for Project Jupiter.
- Notice sent to developer, a unit of Blue Owl Capital.
- Oracle's stock fell 5%; Blue Owl's shares also declined.
- Project Jupiter is part of the Stargate AI infrastructure.
- Oracle's notice allows payment delays if the facility misses its 2028 completion target.
- Oracle's notice follows construction setbacks, primarily related to energy supply.
- Oracle stated Project Jupiter remains on its planned schedule.
- Blue Owl Capital stated the notice does not change financial commitments.
Oracle's Force Majeure Notice
Oracle sent a "force majeure" notice regarding its New Mexico data center project, known as Project Jupiter. This notice aims to protect Oracle from higher expenses if the project does not become operational as expected by 2028. The developer receiving the notice is a unit of Blue Owl Capital.
Market Reaction
Following the news, Oracle's shares decreased by 5%. Blue Owl Capital, the developer's parent company, also experienced a decline in its stock price on Thursday. Both companies issued statements affirming their commitment to the project, with Oracle stating Project Jupiter remains on schedule and Blue Owl confirming no change to financial commitments.
Project Jupiter Context
Project Jupiter is a component of the broader Stargate artificial intelligence infrastructure initiative. This project has encountered various challenges, including regulatory hurdles, local opposition, and concerns from environmental groups. Oracle's Co-CEO Clay Magouyrk previously stated that Project Jupiter would not impact the company's fiscal 2027 revenue or earnings guidance.
Financial Implications
Concerns have been raised regarding Oracle's $18 billion in debt associated with the data center, which is reportedly trading at stressed levels. The force majeure notice suggests Oracle is seeking to delay payments on the campus if its completion timeline is not met.
Updates
- Oracle's notice allows payment delays if the facility misses its 2028 completion target.
- Oracle's notice follows construction setbacks, primarily related to energy supply.
- Oracle stated Project Jupiter remains on its planned schedule.
- Blue Owl Capital stated the notice does not change financial commitments.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
The daily brief
One email each morning: the day's tech stories, clustered across outlets and summarized. No account needed.
One email a day. Unsubscribe in one click, any time.
Today's brief
Spend a few minutes, get the whole day. Every topic's top stories in one hands-free rundown — listen, watch, or read the transcript.
▶ Play today's brief
New every morning, and the back catalogue is archived by date.
How outlets covered it
Oracle sent a force majeure notice to the developer of its Project Jupiter data center in New Mexico, allowing it to delay payments if the facility misses its 2028 completion target. This action follows construction setbacks, primarily related to energy supply, for the Stargate campus, which is a key part of Oracle's AI infrastructure initiative.
Oracle issued a "force majeure" notice to the developer of its New Mexico data center project, Project Jupiter, to mitigate potential cost increases. This action led to a 5% drop in Oracle's stock, as it signals potential delays or financial adjustments for the large-scale AI infrastructure development.