Oracle cites force majeure on Project Jupiter data center, shares fall

Oracle says the notice is a routine step to preserve contractual rights, not a sign of trouble with the New Mexico project underpinning its OpenAI computing deal

Oracle says force-majeure notices are commonplace in large-scale developments and are often used to preserve contractual rights among project partners.

The notice was sent to the developer of Project Jupiter, a data center in New Mexico built by a unit of Blue Owl Capital, according to Bloomberg. Bloomberg reported that Oracle is seeking to delay payments if the site fails to come online in 2028 as planned, rather than trying to exit as its main tenant.

An Oracle spokesperson said Project Jupiter remains on its planned schedule, without commenting on the notice itself, Bloomberg and Yahoo Finance reported. Reuters reported that the project has faced a delayed natural-gas pipeline and legal challenges over water and air-quality permits. Project Jupiter is part of the Stargate initiative and underpins Oracle's agreement with OpenAI to supply AI computing capacity, Reuters reported. Debt tied to the development was already trading below 90 cents on the dollar before the notice, according to Bloomberg.

Oracle shares are down between 4% and 6.4% in trading today, according to Bloomberg and Reuters. Oracle's statement casts the force-majeure notice as a standard legal protection on a large infrastructure project rather than a sign of material trouble with the underlying power and computing deal, preserving contractual flexibility among partners without signalling execution risk to the broader capex and AI infrastructure buildout that project supports.