Sources: Oracle sent a force majeure notice to Blue Owl to delay payments on the 2.45GW Project Jupiter data center in New Mexico if it fails to launch in 2028

Oracle Corp. is moving to shield itself from racking up expenses on a massive data center being built in New Mexico …

Bloomberg 2026-09-24

Context & Ripple Effects

Oracle had already pushed some OpenAI data-center completions from 2027 to 2028 amid labor and material shortages, while Project Jupiter faced permit-driven cost increases and a switch to fuel cells. Reports days earlier that roughly $18 billion of project-linked debt had entered stressed territory put the New Mexico build’s schedule at the center of its financing risk.

The reported notice would move that risk from a construction problem toward a contractual dispute over who bears the cost of a missed 2028 launch target. It follows Blue Owl’s earlier decision not to fund a separate Michigan proposal after concerns over debt terms and delays.

First-order effects

If the reported force-majeure notice is accepted, Oracle can defer payments to Blue Owl tied to a failure to meet the 2028 Project Jupiter launch condition, limiting its near-term exposure to delay-related costs.
Blue Owl faces greater uncertainty over when payments tied to the New Mexico project are due, while the project’s already stressed debt must be valued against a less certain completion timetable.

Second-order effects

Lenders and prospective financiers of Oracle-linked campuses gain a concrete example of schedule risk becoming payment risk, likely putting more weight on construction milestones, power delivery and permit contingencies.
Suppliers exposed to Project Jupiter’s buildout, including fuel-cell providers, face a project schedule whose financing and payment cadence is less assured if the reported protection is invoked.

Third-order effects

Large AI data centers are becoming project-finance assets in which power and permitting delays can redistribute risk among the cloud tenant, capital provider and suppliers rather than simply postpone capacity.
If similar clauses become standard, financiers will seek tighter protections around energization and commissioning milestones, raising the premium on data-center projects with demonstrable power and permitting paths.

The trend: AI data-center expansion is shifting from capacity announcements toward contract structures that allocate execution risk across developers, tenants and private-credit backers.

Discussion

@edzitron Ed Zitron on x
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@firstadopter Tae Kim on x
Weird. It's one thing to do force majeure on a bad hurricane or direct wars, but permits? Bloomberg: “Oracle Corp. is moving to shield itself from racking up expenses on a massive data center being built in New Mexico” Oracle
@sammykoppelman Sam Koppelman on x
This was an article worth reading from @hntrbrkmedia: https://hntrbrk.com/...
@stocksavvyshay Shay Boloor on x
$ORCL and $BE are both down after Oracle reportedly sent a force majeure notice on its New Mexico data center as power and permitting delays pushed Project Jupiter behind schedule. The $165B campus depends on 2.5GW of Bloom fuel cells making this another example of power and perm…
@thestalwart Joe Weisenthal on x
We're starting to see some things *ORACLE SENDS FORCE MAJEURE NOTICE OVER NEW MEXICO DATA CENTER
@negligible_cap @negligible_cap on x
ZeroHedge when $ORCL runs into any minor inconvenience
@chafkin Max Chafkin on x
Is it “force majeure” when you manage to enrage 3/4 of Americans through a combo of massive political spending, and boasting about how you're going to take everyone's job?
@oracle @oracle on x
Project Jupiter remains on our planned schedule. We are fully committed to New Mexico and confident in our path forward. Oracle has made significant economic, community, and philanthropic investments in the state. This includes reimagining Project Jupiter's power plan as part of …
r/BetterOffline r on reddit
Oracle Cites ‘Force Majeure’ to Shield Itself on Controversial Data Center
@jg_nuke @jg_nuke on x
Damage Control to Majeure Tom
@ross__hendricks Ross Hendricks on x
What we're seeing is the early death rattle of the debt-fueled AI capex binge
@zerohedge @zerohedge on x
Does your Force Majeure mean OpenAI is also declaring a Force Majeure on its $300 billion deal to buy compute, and what does this do to your $664 billion RPO?
@y2k_mindset @y2k_mindset on x
The Ellisons have been running around frantically trying to get funding for the Paramount-Warner merger from every source they can, somehow I think that deal might fall through despite regulatory approval.
@ryangrim Ryan Grim on x
Declaring force majeure because you suck is funny
@jessefelder.com Jesse Felder on bluesky
‘Even if the force majeure notice is intended as a precautionary step it risks alarming lenders backing the project. The debt tied to the development is already trading at stressed levels and it raises questions yet again about the resilience of data center leases.’ www.bloomber…
@petertl Peter Thal Larsen on bluesky
Not a great omen for the data centre maximalists. — www.bloomberg.com/news/article...
@quinnypig Corey Quinn on x
Really struggling to see how “we promised money like we were trying to get into your pants, with no real plan for delivery past magical thinking” counts as “force majeure,” but I guess we'll see. [embedded post]
@robertscotthorton Scott Horton on bluesky
The Ellisons cite “force majeure” to shield themselves from the consequences of looming performance defaults in their fraud-laden data center project in Doña Ana County, New Mexico, which is hugely unpopular in the state. www.bloomberg.com/news/article...
@jazzcomposer @jazzcomposer on bluesky
Is the “force majeure” notice from Oracle a smokescreen for their fear that the AI bubble is bursting? — “...[Oracle] is looking to delay payment on the campus, dubbed Project Jupiter...” — Are “regulatory hurdles and local opposition” acts of God or foreseeable events? — w…
@deanbaker13 Dean Baker on bluesky
I was literally speculating about this yesterday www.youtube.com/live/zKww9M7... Instead of saying they are pulling out of data centers because the demand isn't there, the hyperscalers say that they just can't build them because of the evil NIMBYs www.cnbc.com/2026/09/24/o...
r/technology r on reddit
Oracle shares drop on report it sent ‘force majeure’ notice about data center project
r/OracleStock r on reddit
Oracle shares drop on report it sent ‘force majeure’ notice about data center project
r/wallstreetbets r on reddit
Oracle shares drop on report it sent ‘force majeure’ notice about data center project

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