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8h ago

Oracle Invokes Force Majeure Over Power Delays at Project Jupiter

The notice could shift costs to developers or lenders by allowing Oracle to delay tenant payments if power and permitting setbacks push the 2.45 GW campus past its 2028 online target.

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The Oracle logo is shown on an office building in Irvine, California, U.S. June 28, 2018. REUTERS/Mike Blake
Oracle shares fall after concerns over its New Mexico data center project.

Overview

  • Oracle issued a force majeure notice to the Project Jupiter developer on Thursday, Sept. 24, seeking the right to delay payments if the New Mexico campus does not come online by 2028.
  • The company tied the move to delays securing power, including a key 17‑mile Energy Transfer pipeline now targeted for Feb. 1, 2027, and the campus’s reliance on Bloom Energy fuel cells that need a steady natural gas supply.
  • Financing for the site is under strain with roughly $18 billion of construction debt trading below par and Oracle’s credit profile weakening to about BBB-, raising lender concern.
  • Markets reacted to the notice with share drops for Oracle, Blue Owl and Bloom Energy, even as both Oracle and Blue Owl said the project remains on the planned schedule and Oracle is not exiting as the main tenant.
  • The episode raises a broader test case for AI infrastructure deals because force majeure language can reallocate risk to developers and lenders, and it underscores how local permitting fights and resource limits can affect communities and project timelines.