Oracle sends 'force majeure' notice about data center project — stock sinks 5% — SkimNews
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- Oracle shares dropped 5% Thursday after the company issued a "force majeure" notice tied to its New Mexico Project Jupiter data center, seeking protection from higher expenses.
- Oracle sent the notice to the project's developer, a unit of Blue Owl Capital, whose shares also fell Thursday.
- The company is seeking to delay payment if the campus doesn't come online as expected in 2028, though both Oracle and Blue Owl stressed that financial commitments to the multi-year project remain intact.
- The data center carries $18 billion in debt that is already trading at stressed levels, according to the Financial Times.
- Project Jupiter is part of the broader Stargate AI infrastructure buildout tied to President Trump's administration, and has faced local opposition ahead of midterm elections along with environmental group concerns.
- Co-CEO Clay Magouyrk told analysts on the September 10 earnings call that the project would not affect Oracle's previously stated fiscal 2027 revenue or earnings guidance.
Why it matters: Oracle's force majeure notice on Project Jupiter — backed by $18 billion in already stressed debt — shows real financial strain on a flagship AI infrastructure project. The simultaneous selloff in Oracle and Blue Owl shares prices in execution risk against the 2028 timeline, even as management insists fiscal 2027 guidance is unaffected.
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