Oracle has issued a “force majeure” notice to the developer of its Project Jupiter data center in New Mexico, seeking protection against payment obligations if the facility is not operational by its expected 2028 timeline. According to Bloomberg, this notice could allow Oracle to delay payments if unforeseen circumstances prevent timely completion.
The developer is a unit of Blue Owl Capital. Oracle confirmed Project Jupiter remains on schedule and reaffirmed its commitment, while Blue Owl stated the notice does not alter Oracle’s financial commitments to the multi-year development. Project Jupiter is a key part of Oracle’s broader AI and cloud infrastructure expansion and is connected to the Stargate AI infrastructure build-out.
However, the project has encountered regulatory hurdles, local opposition, and environmental concerns, raising doubts about meeting the 2028 operational target. The news affected investor sentiment, with Oracle shares dropping about 4% following the report, and Blue Owl shares also falling. Investors are watching closely for impacts from potential delays, construction costs, and infrastructure commitments on Oracle’s financial outlook.
Additional concerns focus on Oracle’s substantial data-center financing commitments, including around $18 billion in debt tied to data-center projects. While Oracle maintains Project Jupiter is on schedule, the force majeure notice underscores the financial and operational risks surrounding this large-scale project and its AI and cloud capacity expansion.
