Oracle invokes force majeure on New Mexico Project Jupiter data center
25 sources · Reuters · The Motley Fool · The Globe and Mail- Doom: Oracle shares dropped up to 7% after the force majeure notice became public on September 24
- Doom: Power delays, financing issues, and permit problems cited as triggers for the notice
- Doom: The clause lets Oracle defer payments if Project Jupiter misses its 2028 launch target
- Neutral: Project Jupiter is a $165 billion AI data center in New Mexico tied to the Stargate initiative
- Neutral: Oracle has not cancelled the project; the notice provides legal protection against contractual penalties
The story in full
On September 24, 2026, Oracle issued a force majeure notice related to its New Mexico AI data center, known as Project Jupiter, which is also connected to the Stargate initiative. Multiple outlets reported the notice was triggered by power delays and financing and permit issues. The project carries a reported value of $165 billion, with a target online date of 2028. Oracle shares fell between 4% and 7% on the day.
The force majeure clause would allow Oracle to delay payments if the facility misses its 2028 completion target. The notice does not necessarily cancel the project but signals Oracle is seeking legal protection against contractual obligations tied to the delays. A source cited by Reuters and BNN Bloomberg attributed the trigger specifically to power delays.
Analysis
426 wordsOn September 24, 2026, Oracle issued a force majeure notice tied to Project Jupiter, its portion of the $165 billion Stargate AI data center campus in New Mexico. The notice, addressed to landlord Blue Owl, invokes a contractual clause that would allow Oracle to defer lease payments if the facility misses its 2028 completion target. A source cited by Reuters and BNN Bloomberg pointed specifically to power delays as the trigger, with financing difficulties and permitting problems also named. Oracle shares fell between 4% and 7% on the day the notice became public.
The move matters because Project Jupiter is not a routine construction job. It sits inside the broader Stargate initiative, a flagship bet on AI infrastructure at a scale that has few precedents. The force majeure notice does not cancel the project, but it signals that Oracle is seeking legal cover against contractual penalties, which raises immediate questions about the financial assumptions baked into the deal. Adding pressure, U.S. Representative Leger Fernandez called for a pause on data center development in New Mexico on the same day Oracle's stock fell, per a post from grele.bsky.social, layering a regulatory dimension onto the construction and financing problems already in play.
The pro-AI camp largely reads the notice as a procedural response to supply-chain stress rather than a signal of collapsed demand. Briefing Block noted that Oracle can defer Project Jupiter's full rent by up to three years with a corresponding lease extension, and bpodgursky argued that cost and labor pressures across the entire data center buildout, not a bursting bubble, explain the delays. The anti-AI camp is less sanguine. Flatcap Goalkeeper pointed to what it described as Oracle bleeding cash through AI over-speculation and a stock approaching junk status, while Amano Jack characterized the force majeure invocation as a sign of desperation, with investors already selling debt at discounts. The middle ground camp treats the notice as a reminder that project finance at this scale is genuinely hard regardless of the demand story. Joseph Cotterill put it plainly: project finance is quite difficult, AI boom or not. Mack Butterfield compared Oracle's stance to a tenant withholding rent over an unfixed toilet, and Fade the Beat noted that Oracle's own contract terms may leave it with limited exit options anyway.
The argument is unlikely to resolve until Oracle or Blue Owl discloses whether the deferred-payment terms are formally invoked and whether the 2028 target is officially revised, either of which would clarify whether this is contractual housekeeping or the first crack in a much larger financing structure.
What Pro-AI voices are sayingOracle says the project remains on schedule, with lease deferral options built in, and the delays reflect broader construction and supply pressure from the pace of AI infrastructure buildout rather than a fundamental problem with demand.
Quote 1 of 3What Anti-AI voices are sayingThe alarm camp sees Oracle's force majeure notice as a sign of serious financial overextension, pointing to its near-junk bond rating, stressed debt levels, and regulatory opposition as evidence that the AI data center investment cycle is cracking. A notable minority doubts whether AI demand will ever justify the scale of spending involved.
Quote 1 of 13What Middle Ground voices are sayingThe middle camp notes that force majeure notices are common in large-scale developments and may simply be a contractual precaution, but acknowledges the move raises legitimate questions about Oracle's resilience and whether regulatory setbacks or weakening demand is the real driver.
Quote 1 of 12Add your take
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More Pro-AI reactions (2)
“The WSJ reports Oracle can defer Project Jupiter’s full rent up to three years, but the lease extends accordingly; Oracle says it remains on schedule. AI’s growth case strengthens when usable capacity and customer cash catch up with signed obligations.”
Briefing Block, Bluesky · 15:41 UTC“Oracle issued a force majeure notice to Blue Owl tied to the New Mexico portion of its $165 billion Stargate campus, keeping the project on schedule.”
Law Briefly, Bluesky · 16:35 UTC
More Anti-AI reactions (12)
“Oracle is preparing to renege on data center deals in, at least, NM.”
emptywheel, Bluesky · 14:44 UTC“The cracks are starting to show in AI data center financing.”
Dare Obasanjo, Bluesky · 03:10 UTC“It does seem a bit rough that Oracle might be on the hook for hefty rental payments starting 2028 as anchor tenant of a massive data centre complex if the complex is just a hole in the ground.”
Jesse Felder, Bluesky · 17:28 UTC“Oracle sending out Force Majeure notices with the credit market already looking shaky for them and then saying nah all is well”
Rude Law Dog, Bluesky · 12:51 UTC“Surely this will assuage the creditors that Oracle is going to pay back its $100B+ loans.”
0cf8612b2e1e, Hacker News · 14:53 UTC“Finding out that Oracle has a bond rating of BBB- [1] (one step above junk bonds) feels very appropriate for such a company with such a sordid history. [1] https://www.spglobal.com/ratings/en/regulatory/article/-/vie...”
shimman, Hacker News · 14:01 UTC“Doesn't 'Force Majeure' mean exceptional events outside ones control? Pretty sure everything involved here is Oracles own making lol”
ozlikethewizard, Hacker News · 14:34 UTC“Will be interesting to see what excuses these companies will come up with to justify stopping investment in AI without spelling it out.”
potatototoo99, Hacker News, skeptic · 14:14 UTC“The number of datacenters needing to come online doesn't add up to me. It's suspicious”
WokeUp420, Hacker News, skeptic · 14:20 UTC“not so easy to build a pipeline when it's on the public radar as it turns out”
Rude Law Dog, Bluesky · 12:58 UTC“Always the sign of a stable industy/company footing”
Tell-Tale Heart 🏴☠️, Bluesky · 13:04 UTC“gobsmacking fiasco that is the Ellison's data center project in Doña Ana Co, NM, known as "Project Jupiter."”
Scott Horton, Bluesky · 00:06 UTC
More Middle Ground reactions (12)
“I'm surprised to hear that solid-oxide fuel cells are apparently a non-gimmick thing now.”
peri-cl, Hacker News · 15:04 UTC“They don’t want to pay for a DC with no power (even though they’ve contractually obligated to)”
Metro North Capital, Bluesky · 12:54 UTC“Oracle is moving to shield itself from racking up expenses on a massive data center being built in New Mexico, adding a fresh wrinkle to a project beset by opposition and regulatory setbacks.”
Bloomberg News, Bluesky · 07:30 UTC“raises questions about whether regulatory opposition or weakening AI demand is behind the move”
geraldmcgrew, Bluesky · 13:30 UTC“Project Finance Is Quite Difficult, AI boom or not”
Joseph Cotterill, Bluesky · 15:10 UTC“The force majeure declaration looks fair, the surprise is that Oracle have chosen to declare it”
mc20156.bsky.social, Bluesky · 14:13 UTC“The notice also stands to raise questions yet again about the resilience of data center leases.”
Jim Kane, Bluesky · 12:53 UTC“Oracle is acting like your defiant roommate who said he won’t pay rent until the toilet is fixed. The company warned the developer of a massive New Mexico AI data center that it’ll delay contract payments if the project doesn’t”
Mack Butterfield, Bluesky · 18:53 UTC“Oracle Corp. is moving to shield itself from racking up expenses on a massive data center being built in New Mexico, adding a fresh wrinkle to a project beset by opposition and regulatory setbacks.”
Bloomberg Law, Bluesky · 20:40 UTC“Oracle may delay its massive New Mexico Stargate AI campus amid pipeline and permit setbacks.”
The Daily Tech Feed, Bluesky · 18:42 UTC“FORCE-MAJEURE NOTICES ARE COMMONPLACE IN DEVELOPMENTS OF THIS SCALE AND ARE OFTEN USED TO PRESERVE CONTRACTUAL RIGHTS AMONG PROJECT PARTNERS”
Nicholas Brown, Bluesky, skeptic · 15:52 UTC“FORCE-MAJEURE NOTICES ARE COMMONPLACE IN DEVELOPMENTS OF THIS SCALE AND ARE OFTEN USED TO PRESERVE CONTRACTUAL RIGHTS AMONG PROJECT PARTNERS”
FinTwitter, Bluesky, skeptic · 15:50 UTC
Sources
35 articles from 25 outlets- ReutersOracle triggers 'force majeure' on data center project over power delays, source says
- The Motley FoolStock Market Today, Sept. 24: Oracle Stock Dips As it Issues Force Majeure Notice on Project Jupiter Data Center
- The Globe and MailStock Market Today, Sept. 24: Oracle Stock Dips As it Issues Force Majeure Notice on Project Jupiter Data Center
- Yahoo FinanceStock Market Today, Sept. 24: Oracle Stock Dips As it Issues Force Majeure Notice on Project Jupiter Data Center
- BNN BloombergOracle triggers ‘force majeure’ on data centre project over power delays, source says
- TechCrunchOracle sends force majeure notice on its New Mexico Stargate data center
- TechCrunch AIOracle sends force majeure notice on its New Mexico Stargate data center
- Yahoo FinanceWhy Oracle's force majeure notice is freaking out AI bulls
- Investing.comOracle triggers force majeure on massive ’Project Jupiter’ data center
- Hacker News front page (AI)Oracle invokes force majeure on New Mexico AI data center
- Global Banking & Finance ReviewOracle Cites Force Majeure for New Mexico Data Center Project Risks
- TradingKeyOracle Tumbles 7% as Project Jupiter Data Center Force Majeure Notice Sparks Delay Concerns
- PluangOracle declares force majeure on $165B Project Jupiter data center amid financing and permit issues.
- Rolling OutOracle stock sinks 7% after troubling data center notice
- Yahoo FinanceORCL Stock Slides To Early August Levels – $165B New Mexico Project In Focus After Company Reportedly Cites ‘Force Majeure’
- PluangOracle stock drops 6% after force majeure notice on New Mexico data center project delays
- Yahoo FinanceOracle Stock Falls on Force Majeure Notice for Data Center
- Yahoo! Finance CanadaOracle Stock Falls on Force Majeure Notice for Data Center
- AOL.caOracle Declares Force Majeure on $165 Billion Project Jupiter Data Center
- Yahoo FinanceOracle Declares Force Majeure on $165 Billion Project Jupiter Data Center
- 24/7 Wall St.Oracle Declares Force Majeure on $165 Billion Project Jupiter Data Center
- 101 WIXXOracle cites ‘force majeure’ to shield itself on data center, Bloomberg News reports
- The Next WebOracle cites force majeure over New Mexico data centre, Bloomberg reports
- OfficeChaiOracle Shares Slide After Report It Sent "Force Majeure" Notice Over Its New Mexico AI Data Center
- Yahoo FinanceMarket Chatter: Oracle Cites Force Majeure as New Mexico Data Center Faces Delays
- finance.biggo.comOracle Issues Force Majeure Notice on New Mexico AI Data Center, Shares Tumble in Premarket Trading
- finance.biggo.comOracle Sends 'Force Majeure' Notice on New Mexico Data Center, Shares Slide 4%
- Hacker News front page (AI)Oracle cites 'force majeure' to shield itself on controversial data center
- Seeking AlphaOracle sends force majeure notice over New Mexico data center: report (ORCL:NYSE)
- CNAOracle cites 'force majeure' to shield itself on data center, Bloomberg News reports
- CNAOracle triggers 'force majeure' on data center project over power delays, source says
- cnbc.comOracle sends 'force majeure' notice about data center project — stock sinks 5%
- BloombergOracle Cites ‘Force Majeure’ to Shield Itself on Controversial Data Center
- Yahoo FinanceOracle Cites ‘Force Majeure’ to Shield Itself on Controversial Data Center
- Proactive financial newsOracle shares fall as company invokes 'force majeure' over New Mexico data center project
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