Oracle sends force majeure notice on New Mexico Stargate data center

Oracle's stock fell over 4% on September 24, 2026, after reports revealed the company sent a force majeure notice to Blue Owl Capital regarding Project Jupiter, a massive $50 billion AI data center in New Mexico. The legal move aims to shield Oracle from cost increases and delay payments if the project misses its 2028 launch. While Oracle and Blue Owl insist they remain aligned and on schedule, the project faces severe infrastructure setbacks, including a delayed natural-gas pipeline and pending air permits, amid mounting local and environmental opposition.

Force majeure notice and contractual status

• ▪The developer of Project Jupiter, a New Mexico data center campus, is a unit of Blue Owl Capital, which owns the data-center developer Stack Infrastructure
• ▪Oracle vice president Michael Egbert stated that Project Jupiter, a New Mexico data center project, remains on schedule and that force majeure notices are commonplace in large developments to preserve contractual rights
• ▪Oracle is not seeking to exit as the primary tenant of Project Jupiter, but the force majeure notice would allow the company to delay payments if the facility misses its 2028 target to come online
• ▪Blue Owl Capital stated that Oracle and Blue Owl Capital remain fully aligned and that Oracle's force majeure notice does not change the financial commitments to the multi-year Project Jupiter
• ▪Oracle sent a force majeure notice to Blue Owl Capital, the developer of Project Jupiter, a massive data center campus in Doña Ana County, New Mexico, to protect itself from potential cost increases

Project Jupiter delays and permitting issues

• ▪Project Jupiter, a New Mexico data center campus, has faced delays to a planned Energy Transfer natural-gas pipeline, which was pushed back nearly six months to February 1, 2027, after regulators repeatedly denied permits
• ▪An air quality permit for the Bloom Energy gas-powered fuel cells intended to power the 2.45-gigawatt Project Jupiter campus is pending, with the New Mexico Environment Department facing a November 23, 2026 deadline

Market reaction and financial impact on Oracle

• ▪Oracle's stock price fell between 4% and 6% on September 24, 2026, following reports of a force majeure notice on Project Jupiter, erasing billions of dollars in market value
• ▪Oracle's stock decline on September 24, 2026, erased approximately $7.2 billion from the personal fortune of Oracle co-founder Larry Ellison, who owns roughly 40% of the company

Oracle debt and financing for Project Jupiter

• ▪Oracle secured $18 billion in loans from multiple banks for Project Jupiter, a New Mexico data center project, in 2025
• ▪Concerns have risen over Oracle's $18 billion in debt tied to the data center project known as Project Jupiter, which is reportedly trading at stressed levels

Oracle financial guidance and analyst projections

• ▪Oracle co-CEO Clay Magouyrk stated on a September 10, 2026 earnings call that Project Jupiter, a New Mexico data center project, would not affect Oracle's previously stated fiscal year 2027 revenue or earnings guidance
• ▪Brokerage William Blair projected minimal short-term impact on Oracle, stating that its fiscal year 2027 should not be affected by Project Jupiter

Stargate Project background

• ▪Project Jupiter is a flagship site of the $500 billion Stargate Project, an artificial intelligence infrastructure initiative launched by OpenAI, Oracle, and SoftBank Group
• ▪The Stargate Project was announced alongside President Donald Trump in the Oval Office in 2025 to build out computing capacity for artificial intelligence companies

Project Jupiter investment and economic impact

• ▪Oracle projected that Project Jupiter will bring up to $4.7 billion in economic benefits to the state of New Mexico
• ▪A fact sheet from Doña Ana County indicates Project Jupiter has a minimum initial investment of $50 billion, with potential investment reaching $165 billion over 30 years

Local opposition and public outreach

• ▪Project Jupiter has faced local opposition from residents and environmental groups over its potential impact on local energy, water, and natural resources
• ▪Oracle has launched a public outreach campaign in New Mexico to win over critics of Project Jupiter, a data center project in the state, as data centers become a political flashpoint ahead of the midterm elections

Debatable claims

• ▪Project Jupiter's economic benefits justify its environmental and resource costs
• ▪Local governments should restrict the construction of massive AI data centers