Overview
- Oracle sent a force majeure notice to the developer Blue Owl's Stack unit on Thursday seeking to delay contractual payments if the 1,400-acre Project Jupiter campus misses its 2028 start date.
- The company cited delays securing a natural gas supply needed to run Bloom Energy fuel cells after repeated permit rejections pushed the Green Chile pipeline into early 2027.
- Despite the notice, Blue Owl and Oracle say their long-term commitments to the build have not changed and Oracle has not sought to exit the lease.
- Reporting shows that Oracle may nonetheless remain contractually responsible for servicing the roughly $18 billion of project loans and cannot simply terminate the lease under current agreements.
- The dispute sent Oracle, Blue Owl and Bloom Energy shares lower and left pieces of the $18 billion financing trading at distressed levels, prompting lenders and other developers to rethink risk allocation for large AI data center projects.