TLDR
- Oracle issued a force majeure notice on its Project Jupiter data center in New Mexico.
- The move aims to shield Oracle from payments if the facility misses its 2028 launch date.
- Oracle stock fell about 4%, Blue Owl Capital dropped 4%, and Bloom Energy sank 6%.
- The project depends on a natural gas pipeline that’s been delayed to February 2027.
- Project Jupiter is a key piece of the larger Stargate AI infrastructure plan with OpenAI and SoftBank.
Oracle (ORCL) stock dropped roughly 4% after news broke that the company sent a force majeure notice to the developer behind its Project Jupiter data center in New Mexico. Blue Owl Capital (OWL) fell 4%, and Bloom Energy (BE) slid 6% on the same report.
The notice, first reported by Bloomberg, is designed to protect Oracle from financial liability if the massive AI facility doesn’t hit its planned 2028 launch date. Oracle is the main tenant of the site.
Project Jupiter is being built by Stack Infrastructure, a Blue Owl Capital portfolio company. It’s meant to deliver 2.45 gigawatts of power, enough for roughly 1.8 million homes.
That scale makes it one of the largest data center builds tied to the AI boom. But the project has run into a real world problem: water and power.
Why The Pipeline Matters
Oracle partnered with Bloom Energy to run the campus on solid oxide fuel cells. These cells work well in New Mexico’s dry climate because they need very little water to generate electricity.
The catch is that the fuel cells still need a steady flow of natural gas. That gas is supposed to arrive through a 17-mile pipeline called the Green Chile Project, operated by Energy Transfer.
That pipeline was originally targeted for August 2026. It’s now pushed back to February 2027.
The delay stems from New Mexico’s State Land Office repeatedly denying right-of-way permits across state trust lands. Local officials and environmental groups have raised concerns about climate impact and resource strain.
Without the pipeline, Bloom’s fuel cells can’t run. That leaves the campus without a working power source for now.
Force majeure clauses let companies pause contractual obligations when something unexpected and unavoidable gets in the way. Oracle says it’s using the clause as a precaution.
The company maintains that “Project Jupiter remains on our planned schedule.” Still, the filing suggests real worry about whether the timeline holds.
What’s At Stake Financially
About 20 banks put together an $18 billion loan to help finance the campus. That’s a lot of capital riding on a project that now faces a stalled pipeline and local pushback.
If Oracle wins some breathing room from Blue Owl on payments, it could still rattle the lenders backing the build. The standoff adds a new wrinkle to a project that’s already been in the works for nearly two years.
Project Jupiter isn’t a standalone effort. It’s part of the broader Stargate initiative, which also involves OpenAI and SoftBank, and was announced with President Trump alongside executives from all three companies.
SoftBank (SFTBY) shares also fell around 6% following the report. The stock reaction across the board shows how tightly linked these companies now are through shared AI infrastructure bets.
Oracle has not said whether the force majeure notice would fully release it from its existing financial commitments tied to the project. Bloomberg reported the news citing people familiar with the matter.
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