Oracle sent a force majeure notice to Blue Owl, the developer of Project Jupiter, a 2.45-gigawatt Stargate data center campus under construction in New Mexico, Bloomberg first reported on September 241,2,5. Oracle shares fell 5% on the news; Blue Owl also saw its stock decline.
The notice would allow Oracle to delay payments should the facility miss its 2028 target to come online. Oracle is not seeking to exit as the campus's main tenant, according to Bloomberg's sources.
Energy supply and regulatory friction
Project Jupiter has faced regulatory hurdles and local opposition. Many of the setbacks are tied to energy supply: the campus is designed to run on gas-powered fuel cells from Bloom Energy, making a reliable gas supply central to its timeline. An Energy Transfer pipeline intended to deliver gas to the site has been part of the bottleneck.
Oracle maintains it does not expect a delay. "Project Jupiter remains on our planned schedule," Oracle said in a statement to CNBC. "We are fully committed to New Mexico and confident in our path forward". Blue Owl said in its own statement to CNBC that "this notice does not change the financial commitments to this multi-year project".
Oracle co-CEO Clay Magouyrk told analysts on September 10 that Project Jupiter would not affect its previously stated fiscal 2027 revenue or earnings guidance. Oracle has $18 billion in debt tied to the data center.
Stargate and the broader AI buildout
Project Jupiter is part of the broader Stargate artificial intelligence infrastructure buildout associated with President Donald Trump. The notice comes as AI data center construction faces growing scrutiny nationally, and as developers take on steep costs to build capacity for customers like OpenAI.
ANALYSIS The force majeure filing functions as a financial hedge rather than a withdrawal: Oracle retains its tenant position while shifting timeline risk onto the developer. With $18 billion in debt attached to the project and energy infrastructure still unresolved, the gap between Oracle's public confidence and its contractual maneuvering is the detail investors are pricing in.