Oracle issues force majeure on NM data center

On Sept. 24, 2026, Oracle (ORCL) issued a force majeure notice to the developer of Project Jupiter, a large data center project in New Mexico. The developer is a unit of Blue Owl Capital (OWL) that is building the campus for Oracle under a long‑term lease structure. The notice is designed to give Oracle the option to delay or defer payments under that lease if the campus fails to begin operations as planned in 2028.

Reports describe the measure as focused on payment timing rather than on cancelling the project. The notice centers on the risk that the facility may not be ready on schedule, and seeks to align Oracle’s financial obligations with actual progress at the site. This legal step comes as the project faces timing uncertainties around its supporting infrastructure.

Project Jupiter is described in market reports as a large, multi‑year data center campus with significant financing behind it. The site is planned to rely on an on‑site power system using Bloom Energy (BE) fuel cells, which are to be supplied by a new natural‑gas pipeline. This power configuration is central to bringing the campus into service on the planned schedule.

Regulatory and permitting delays have affected elements of that power setup. Reports cite a pushed in‑service date for the gas pipeline and a pending air‑quality permit, as well as decisions by regulators to deny or delay required approvals. These issues have raised questions about whether the power infrastructure can be completed in time to support the targeted 2028 online date.

Despite the force majeure notice, both Oracle and Blue Owl Capital (OWL) have publicly affirmed their commitment to the project. Oracle stated that “Project Jupiter remains on our planned schedule” and emphasized its continued commitment to New Mexico and confidence in the project’s path forward. Blue Owl Capital (OWL) said the notice “does not change the financial commitments to this multi‑year project,” indicating that the underlying funding arrangements remain intact.

These statements frame the notice as a contractual safeguard rather than a signal of withdrawal. While the legal language preserves Oracle’s rights if delays persist, both parties are presenting the development as a precaution taken while they work through permitting and scheduling challenges around the campus and its power systems.

Financial markets reacted negatively after news of the force majeure notice emerged. Several reports indicated that Oracle’s stock price declined by a mid‑single‑digit percentage on Sept. 24. The share move reflects investor unease about potential schedule risk and the possibility of deferred revenue or higher costs associated with the Project Jupiter build‑out.

The combination of a large, heavily financed campus and visible regulatory hurdles around key infrastructure appears to have sharpened market focus on execution risk. At the same time, the reaffirmed commitments from Oracle and Blue Owl highlight that the project remains active, with the notice functioning as a mechanism to manage financial exposure if further delays occur.