Oracle sends force majeure notice on its New Mexico Stargate data center: Bloomberg
The notice could let Oracle delay payments if the 2.45-gigawatt campus misses its 2028 target, while Blue Owl says commitments remain unchanged.
- On Thursday, Oracle sent a force majeure notice to Blue Owl Capital regarding Project Jupiter, its planned AI data center in New Mexico, allowing the company to suspend some contractual obligations during disruptions.
- Oracle shares slid about 4% on Thursday afternoon as investors questioned the company's ability to deliver on its massive AI infrastructure expansion amid concerns about execution risk.
- Bloom Energy shares slumped alongside Oracle following the announcement, as the two companies are linked through a fuel-cell contract powering the New Mexico data center project.
- Evercore called the notice "a pretty sensible move" to align revenue and expenses, while RBC Capital Markets analyst Rishi Jaluria wrote it signals Oracle's increased execution risk warranting legal protection.
- Project Jupiter remains critical for Oracle to convert its growing backlog into revenue; any slippage in the 2028 timeline has direct implications for capacity delivery and revenue recognition, Jaluria wrote.
65 Articles
65 Articles
Oracle’s Project Jupiter delay sends ripple through AI financing
Oracle’s move to protect itself against potential delays at a massive data centre project developed by Blue Owl in New Mexico sent a chill through the trillion-dollar market for AI infrastructure financing, according to interviews
Due to construction problems in New Mexico, Oracle wants to stop payments for a $18 billion data center. The banks involved are then on unsaleable loans. The AI infrastructure bubble threatens to burst.
Oracle says Project Jupiter remains on track despite power supply concerns
Oracle says Project Jupiter near Santa Teresa remains on schedule and that its data center plans have not changed despite a notice that could allow the company to defer payments to the project’s developer, Stack Infrastructure.
Oracle's Force Majeure Move on New Mexico AI Data Center Exposes Cracks in Hyperscale Buildout
Oracle sent a force majeure notice to Project Jupiter's developer to defer payments if the 2.5GW New Mexico AI data center misses its 2028 target amid regulatory delays and opposition. The move highlights growing risks in hyperscale builds while both parties insist the project stays on schedule. It underscores tensions between AI ambitions and local concerns.
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