Oracle has issued a force majeure notice to the developer of Project Jupiter, a data center under construction in New Mexico. The clause allows the company to delay payments if the facility fails to launch by the 2028 target date due to external factors.
The project, part of the $5 billion Project Stargate initiative with SoftBank and OpenAI, faces energy supply issues. A gas pipeline, originally scheduled for summer, is delayed until February due to permit denials, while the site also awaits an air-quality permit for its fuel-cell system by November 23.
Following the news, Oracle shares dropped over 3%. Investors are increasingly cautious regarding the company's capital expenditure, which reached $28.5 billion in the first fiscal quarter, compared to $8.5 billion a year prior, alongside a negative free cash flow of $5 billion.
Despite the notice, Oracle maintains that the project remains on schedule. Blue Owl Capital, the developer, stated that financial commitments remain unchanged. The facility is designed to provide 2.45 gigawatts of computing power, though it currently faces local opposition and environmental regulatory hurdles.
