On Thursday, Oracle Corp. saw its common stock decline by more than three percent after the firm disclosed that it had sent a force majeure notice concerning its New Mexico data center venture. The notice is intended to shield the company from escalating expenses tied to the development, which is identified as Project Jupiter and is slated to become operational by 2028. Analysts noted that the move reflects heightened financial risk surrounding the multi-billion-dollar project.
Oracle responded to CNBC with a statement asserting that Project Jupiter remains on the company’s planned timeline and that it stays fully committed to the New Mexico location. The company also emphasized confidence in its forward path despite the notice. In an earnings call on September 10, co-CEO Clay Magouyrk told analysts that the initiative would not alter Oracle’s previously issued fiscal 2027 revenue or earnings guidance.
The force majeure notice was addressed to the developer, a subsidiary of investment firm Blue Owl Capital, according to CNBC reporting. Blue Owl’s shares also slipped on the same trading day. In a statement to the outlet, Blue Owl Capital said the notice does not modify the financial obligations tied to the multi-year project, reaffirming its commitment to the agreed terms.
Project Jupiter is part of the larger Stargate artificial intelligence infrastructure program that was launched under the administration of President Donald Trump. The New Mexico site has encountered a series of obstacles, including opposition from local residents ahead of the upcoming midterm elections and objections raised by environmental organizations. Additionally, the construction of a natural gas pipeline intended to supply fuel to the facility has experienced delays, further complicating the timeline.
Bloom Energy, the company selected to provide fuel-cell power for the more than 2.4-gigawatt facility, saw its stock decline by three percent following the announcement. In a post on X, Bloom Energy reiterated its commitment to the contract and affirmed that it remains aligned with the planned schedule. Meanwhile, analysts cited by the Financial Times highlighted that Oracle carries approximately $18 billion of debt linked to the data center, a liability that is currently trading at stressed levels.