Oracle sent a force majeure notice to the developer of its New Mexico AI data center on Thursday, a move that would allow the company to delay payment on the campus if it does not come online as expected in 2028. Oracle stock fell 4% following the news.
The notice was sent to the developer, a unit of Blue Owl Capital, according to Bloomberg.
"Project Jupiter remains on our planned schedule," Oracle said in a statement. "We are fully committed to New Mexico and confident in our path forward."
Blue Owl Capital disputed any suggestion that the notice would alter the project's finances. "This notice does not change the financial commitments to this multi-year project," the company said in a statement.
The data center, called Project Jupiter, is part of the broader Stargate AI infrastructure buildout connected to President Donald Trump. According to CNBC, the project has encountered obstacles including community pushback against data centers in the run-up to the midterm elections and objections raised by environmental groups. The Financial Times has also reported growing anxiety over $18 billion in debt tied to the data center, debt that is already trading at stressed levels.
Oracle has...