Oracle Invokes Force Majeure on $300 Billion Data Center Project, Shares Fall 4%
Oracle has issued a force majeure notice to developer Stack Infrastructure (Blue Owl Capital) for its "Project Jupiter" AI data center in New Mexico, citing power infrastructure delays. The 2.45 GW facility, part of the Stargate AI initiative, faces delays due to a rejected permit and a delayed natural gas pipeline. Oracle seeks to delay payment obligations if the project misses its 2028 target, not exit its tenant role. Oracle shares fell 3-4%, Blue Owl dropped 2.3%, and Bloom Energy declined 4.4%. Related debt is trading below 90% of face value.
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Oracle must pay data center investors even if site lacks electricity, Financial Times reports
According to a Financial Times report, Oracle is contractually obligated to pay investors in a data center project even if the site has no electricity. The company has sent a 'force majeure' notice regarding the project, causing its stock to drop 3%, as reported by CNBC. Reuters notes that the delay in the Oracle and Blue Owl project is sending ripples through AI financing, according to sources. The Motley Fool reports that Oracle wants protection if its AI data center is delayed, analyzing what that changes for investors. Axios states that Oracle is moving to shield itself from AI buildout risks. The story is covered by multiple major financial news outlets, highlighting contractual risks and market reactions to the data center project's challenges.
Read sourceOracle invokes force majeure on data center project due to power delays, sources say
Oracle has triggered a 'force majeure' clause on a data center project due to power delays, according to a source cited by Reuters. The move has caused Oracle's stock to drop 3%, as reported by CNBC. The delay is sending ripples through AI financing, with Reuters noting that the project involves Blue Owl. The Financial Times reports that Oracle's $18 billion data center debt is under strain amid local pushback. Barron's highlights that the issue also poses a problem for GE Vernova, a power equipment supplier. The force majeure notice allows Oracle to suspend obligations without penalty due to circumstances beyond its control, specifically power infrastructure delays that are hindering the project's completion.
Read sourceOracle Seeks Force Majeure on Data Center Project, Stock Drops on Investor Concerns
Oracle has sent a 'force majeure' notice regarding a data center project, causing its stock to drop by 3%. The move has raised concerns among investors about potential setbacks in the company's data center expansion plans. According to Reuters, the delay in the project, which involves a partnership with Blue Owl, is sending ripples through AI financing. The Financial Times reports that Oracle's $18 billion data center debt is under strain due to local pushback against the project. MarketWatch notes that investors fear the data-center setback could impact Oracle's growth trajectory. The force majeure declaration suggests that Oracle is citing unforeseen circumstances to potentially renegotiate or delay its contractual obligations for the facility, which is critical for its cloud and AI infrastructure ambitions.
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Oracle Issues Force Majeure Notice for New Mexico Data Center, Seeking Delay Options
Oracle has issued a force majeure notice to Stack Infrastructure, a unit of Blue Owl Capital, regarding its 'Project Jupiter' data center in New Mexico. The notice is a precautionary measure to avoid potential fees if the project is delayed beyond its planned 2028 operational date, not an attempt to exit its role as the primary tenant. The project, a key part of the Stargate AI infrastructure initiative, has faced significant hurdles including a rejected permit and delays in a critical natural gas pipeline, now expected to be operational by February 2027. While Oracle states it remains committed to the project, the notice has raised concerns among lenders, with related debt trading below 90% of face value. The development highlights growing opposition to AI data center expansion, which has become a political issue ahead of the US midterm elections.
Read sourceOracle Triggers Force Majeure for 2.45 GW AI Data Center Project Jupiter Due to Power Bottleneck
Oracle has issued a force majeure notice to the developer of its 'Project Jupiter' AI data center in New Mexico, a $165 billion, 2.45 GW facility. The notice prepares for potential payment suspensions if the project, slated for 2028, is delayed due to power supply issues. The core problem is a 17-mile natural gas pipeline, 'Green Chile Project,' needed to fuel Bloom Energy's fuel cells for the data center. The pipeline's construction has been delayed due to permitting issues on state trust land. While Oracle states the project is on schedule, the force majeure notice signals legal preparation for delays. The pipeline delay threatens the entire power solution, exposing a new bottleneck in AI infrastructure: securing energy and permits for gigawatt-scale facilities. Following the news, Oracle, Blue Owl Capital, and Bloom Energy shares fell.
Read sourceOracle Invokes Force Majeure on $300 Billion Data Center Project, Shares Fall 4%
Oracle has issued a force majeure notice to developer Stack Infrastructure, a subsidiary of Blue Owl Capital, regarding the Project Jupiter data center complex in New Mexico. The project, a $300 billion special purpose vehicle (SPV) financing plan to build four data centers for OpenAI, faces delays due to opposition and regulatory setbacks. Oracle's notice seeks to delay payment obligations if the project fails to meet its 2028 launch target, rather than exit its tenant role. The move has pressured financing chains, with Oracle shares falling 4% pre-market, Blue Owl Capital dropping 2.3%, and power supplier Bloom Energy declining 4.4%. Analysts note the legal effectiveness of the force majeure claim is uncertain. Oracle insists the project is on track, but the defensive action has heightened investor concern over potential cascading impacts on the highly leveraged SPV structure involving multiple large financial institutions.
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