Oracle’s stock slipped more than three percent on Thursday after the company disclosed a force majeure notice linked to its New Mexico data center initiative. The notice is intended to shield the firm from rising costs associated with the project, CNBC reported. The market reaction reflected investor unease about potential financial exposure.
In a statement to CNBC, Oracle affirmed that Project Jupiter remains on its planned schedule and reiterated full commitment to the New Mexico site. The company expressed confidence in its forward path, emphasizing that the force majeure filing does not alter the overall timeline for the AI-focused data center complex.
The filing signals Oracle’s intent to postpone payment on the campus if the facility does not become operational by 2028, according to the report. The notice was addressed to the developer, a unit of Blue Owl Capital, whose shares also fell on Thursday. The potential delay aligns with earlier concerns about cost overruns.
Blue Owl Capital issued a statement confirming that the force majeure notice does not modify the financial obligations tied to the multi-year project. The developer emphasized that all contractual commitments remain intact, seeking to reassure investors amid the concurrent share price decline in the market.
Project Jupiter forms part of the broader Stargate artificial-intelligence infrastructure program launched under President Donald Trump. The New Mexico site has encountered multiple setbacks, including local opposition ahead of the midterm elections and objections from environmental groups. Additionally, the construction of a natural-gas pipeline intended to supply the facility has experienced delays, compounding regulatory and logistical challenges for the data-center rollout.
Bloom Energy, selected to power the more than 2.4-gigawatt complex with fuel-cell technology, also saw its shares drop three percent following the announcement. In a post on X, the company reaffirmed its commitment to the contract and the planned timeline. Oracle co-CEO Clay Magouyrk told analysts on the September earnings call that the project would not affect the firm’s fiscal 2027 revenue or earnings guidance. Financial-Times reporting highlighted concerns over Oracle’s roughly $18 billion debt tied to the data center, noting it is trading at stressed levels.