Overview
- Oracle issued a force majeure notice to Blue Owl’s developer on Thursday to preserve the company’s ability to pause payments if Project Jupiter fails to come online in 2028, reporters citing people familiar with the matter said.
- The notice is a precaution, not an exit, and force majeure clauses excuse or delay obligations when events are beyond a party’s control; Oracle and Blue Owl both issued statements saying their commitments remain unchanged.
- A key cause of the timing risk is a delayed 17-mile natural gas pipeline needed to fuel Bloom Energy’s on-site fuel cells, which has slipped to February 1, 2027 after repeated permit denials and right-of-way rejections.
- Financial strain is visible: roughly $18 billion of construction loans tied to the campus have been trading at stressed levels near 89–91 cents on the dollar and Oracle’s credit rating weakened to BBB-, prompting immediate stock drops for Oracle, Blue Owl and Bloom Energy.
- Regulatory and legal hurdles have slowed work even as the New Mexico Supreme Court lifted key permitting stays on September 17; the episode shows how power, permits and contract terms are now central limits on rapid AI data center buildouts.