Oracle Invokes Force Majeure on Project Jupiter, Its 2.45GW New Mexico AI Data Center

Oracle has sent a force majeure notice to the developer of Project Jupiter, a massive New Mexico data center tied to the broader Stargate AI infrastructure buildout, seeking to protect itself from payment obligations if the facility fails to come online by 2028. The 2.45 gigawatt project is backed by an $18 billion loan, and related debt was already trading below 90 cents on the dollar before the notice surfaced. Oracle cited regulatory and infrastructure setbacks as the basis for invoking the clause.

The disclosure hit Oracle shares hard, with the stock falling as much as 7% in early trading. Blue Owl Capital, a financing partner on the deal, dropped 2.6% in premarket trading, and Bloom Energy fell 5.9%, reflecting the broad knock-on effect across companies linked to the data center supply chain. The move raised investor concerns about the pace and financial viability of large-scale AI infrastructure projects more widely.