WHAT YOU NEED TO KNOW
  • Oracle shares fell 5% after the company sent a force majeure notice tied to its New Mexico data center project.
  • Oracle is seeking to delay payment if Project Jupiter does not come online as expected in 2028, Bloomberg reported.
  • Oracle said Project Jupiter remains on schedule, while Blue Owl said the notice does not change financial commitments.
  • The project has faced regulatory hurdles, local opposition and concerns involving $18 billion in debt tied to the data center.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.

Oracle shares sank 5% on Thursday after news emerged that the company had sent a “force majeure” notice connected to its New Mexico data center project. The notice was intended to protect Oracle from higher expenses tied to the development.

The project is known as Project Jupiter and represents a substantial data center campus planned for New Mexico. The latest development put renewed attention on its schedule, costs and financial structure.

Oracle is seeking to delay payment on the campus if it does not come online as expected in 2028, according to a Bloomberg report. Bloomberg first reported the news, citing sources familiar with the matter.

CNBC subsequently confirmed that Oracle sent the notice to the developer. That developer is a unit of Blue Owl Capital, which is also financially connected to the project.

MORE NEWS: Trump and Xi Seal Sweeping Tariff Breakthrough on $30 Billion in Goods

Oracle maintained that the notice does not signal a retreat from Project Jupiter or New Mexico. In a statement provided to CNBC, the company insisted that its timetable remains intact.

“Project Jupiter remains on our planned schedule,” Oracle said. “We are fully committed to New Mexico and confident in our path forward.”

The company’s statement focused on its continuing commitment and confidence in the project. At the same time, the notice was tied to Oracle’s attempt to shield itself from higher expenses and potentially delay payment if the 2028 expectation is not met.

Blue Owl Capital also addressed the notice in a statement to CNBC. The firm said Oracle’s action had not altered the underlying financial commitments associated with the development.

With the Federal Reserve expected to keep interest rates unchanged this month, do you think interest rates should remain where they are instead of being cut?

By completing the poll, you agree to receive emails from Gold Investors News, occasional offers from our partners and that you've read and agree to our privacy policy and legal statement.

“This notice does not change the financial commitments to this multi-year project,” Blue Owl Capital said. Blue Owl shares also fell on Thursday, although the source did not provide the size of that decline.

The reaction in both companies’ shares followed another difficult turn for the planned campus. Oracle’s stock decline was sharper and specifically measured at 5% during Thursday’s trading.

Project Jupiter is part of the broader Stargate artificial intelligence infrastructure buildout with President Donald Trump. The New Mexico data center has encountered repeated setbacks and regulatory hurdles during its development.

Those complications include local opposition to data centers ahead of the upcoming midterm elections. Environmental groups have also raised concerns about the project.

Close

MORE NEWS: Washington Millionaires Flee to Florida as Punitive Income Tax Looms

The combination of local resistance and regulatory obstacles has complicated the path forward for the campus. Oracle, however, continues to say that Project Jupiter remains on its planned schedule.

Oracle leadership previously addressed the project’s potential effect on the company’s financial outlook. Co-CEO Clay Magouyrk discussed Project Jupiter with analysts during Oracle’s earnings call on Sept. 10.

Magouyrk said the project would not affect Oracle’s previously stated fiscal 2027 revenue or earnings guidance. That assurance addressed the company’s existing forecast rather than the separate question of whether payment could be delayed if the campus misses its expected 2028 opening.

Financial concerns surrounding the development have nevertheless increased. Oracle has $18 billion in debt tied to the data center, according to the Financial Times.

That debt is already trading at stressed levels, the Financial Times reported. The combination of the debt burden, regulatory barriers, local opposition and the force majeure notice has kept investor attention firmly fixed on Project Jupiter.

The latest notice therefore places Oracle’s contractual protection efforts beside its public insistence that the project remains on schedule. Blue Owl likewise maintains that financial commitments to the project have not changed.

For now, Oracle remains committed to New Mexico and continues to express confidence in its path forward. Yet Thursday’s 5% share decline showed that the notice, the possible payment delay and the project’s broader difficulties drew a swift response from the market.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.