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 2026-09-25

Context & Ripple Effects

Oracle’s New Mexico buildout had already become a financing and execution test: sources reported that roughly $18 billion of associated debt had entered stressed territory amid construction-delay concerns and local pushback. The project’s power and permitting hurdles are detailed in coverage of Project Jupiter’s execution risks.

Oracle has made major financial commitments to Project Jupiter, while its wider data-center program had put it on the hook for tens of billions in commitments. The confirmed notice to the project developer makes the allocation of delay risk a live issue, even as Oracle says the project remains on schedule.

First-order effects

Oracle’s notice puts its payment obligations to Project Jupiter’s developer under contractual dispute if the cited launch condition is not met; sources say Blue Owl is the counterparty and that Oracle seeks a payment delay.
Blue Owl and the project’s other capital providers must assess whether the notice affects the timing and certainty of cash flows supporting the New Mexico facility.

Second-order effects

The reported stress in debt tied to the site makes a contested payment timetable more consequential for lenders and investors, who must price construction, power and permitting risk alongside Oracle’s commitments.
Oracle’s removal of a key project partner and the notice increase the importance of enforceable completion and payment terms for parties financing its large-scale data-center projects.

Third-order effects

If power availability and permits can trigger disputes over tenant payments, AI data-center financing will place more value on contracts that explicitly allocate infrastructure-completion risk among operators, developers and capital providers.
The episode reinforces a shift from treating compute capacity as a straightforward leasing commitment to treating it as project finance whose viability depends on power, permits and construction execution.

The trend: AI infrastructure is becoming a project-finance market in which power and permitting milestones increasingly determine the value of compute commitments.

Discussion

@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 …
@ross__hendricks Ross Hendricks on x
What we're seeing is the early death rattle of the debt-fueled AI capex binge
@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
@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” ..."has hit serious setbacks including the denial of a perm…
@sammykoppelman Sam Koppelman on x
This was an article worth reading from @hntrbrkmedia: https://hntrbrk.com/...
@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?
@jg_nuke @jg_nuke on x
Damage Control to Majeure Tom
@negligible_cap @negligible_cap on x
ZeroHedge when $ORCL runs into any minor inconvenience
@edzitron Ed Zitron on x
[image]
@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?
@thestalwart Joe Weisenthal on x
We're starting to see some things *ORACLE SENDS FORCE MAJEURE NOTICE OVER NEW MEXICO DATA CENTER
@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…
@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...
@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...
@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…
@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…
@petertl Peter Thal Larsen on bluesky
Not a great omen for the data centre maximalists. — www.bloomberg.com/news/article...
r/OracleStock r on reddit
Oracle shares drop on report it sent ‘force majeure’ notice about data center project
r/technology 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
r/BetterOffline r on reddit
Oracle Cites ‘Force Majeure’ to Shield Itself on Controversial Data Center

Chronicles