Oracle invokes ‘force majeure’ to shield itself from data center issues: Bloomberg

### Oracle Issues Force Majeure Notice Over $18 Billion New Mexico Data Center Project

Oracle has issued a “force majeure” notice related to its massive Project Jupiter data center campus in New Mexico, seeking protection against potential cost increases and possible delays at the facility, according to a Bloomberg report.

The project is being developed by a unit of Blue Owl Capital and is expected to play a major role in Oracle’s expanding artificial intelligence infrastructure operations. Oracle said the project remains on schedule and reaffirmed its commitment to the New Mexico development.

“Project Jupiter remains on our planned schedule,” Oracle said in a statement to CNBC, adding that it remains “fully committed to New Mexico” and confident about the project’s path forward.

The Bloomberg report said Oracle is seeking to delay certain payments if the data center campus does not become operational as expected in 2028. Blue Owl said the notice does not alter Oracle’s financial commitments to the multi-year development.

“Force-majeure notices are commonplace in developments of this scale,” Oracle said, explaining that such notices can be used to preserve contractual rights between project partners. The company added that issuing the notice does not itself indicate that the project has been delayed or that its delivery expectations have changed.

Project Jupiter is part of the broader Stargate artificial intelligence infrastructure initiative and is connected to Oracle’s agreement to provide computing capacity for OpenAI. The approximately 1,400-acre campus has secured about $18 billion in financing from a consortium of banks.

The development has also encountered broader challenges surrounding the expansion of large data centers. Local opposition has grown in parts of New Mexico, with communities raising concerns about electricity demand, water consumption and the use of other natural resources.

The increased scrutiny comes as data center developments become a growing political and regulatory issue in the United States, particularly because of the enormous power and water requirements associated with AI computing facilities.

Oracle’s debt tied to the project has also attracted attention from financial markets. The Financial Times has reported that the roughly $18 billion in debt associated with the data center has been trading at stressed levels, reflecting concerns about the financial and operational risks surrounding the development.

Oracle executives have continued to indicate that Project Jupiter is not expected to alter the company’s previously announced near-term financial outlook. Co-CEO Clay Magouyrk said during Oracle’s September 10 earnings call that the project would not affect the company’s fiscal 2027 revenue or earnings guidance.

Brokerage William Blair said the latest development adds to concerns about regulatory and power-related delays affecting AI infrastructure deployments, while expecting limited near-term financial consequences for Oracle.

The firm noted that Jupiter is not expected to contribute revenue during Oracle’s current fiscal year, meaning any impact on fiscal 2027 would be limited under the company’s existing guidance.

Oracle shares declined about 4% on Thursday following reports of the force majeure notice, reflecting investor concerns over the scale, financing and execution risks associated with the company’s rapidly expanding AI data center commitments.