Oracle Shares Drop 4% After Bloomberg Report of 'Force Majeure' Notice on Project Jupiter Data Center

Oracle shares fell 4% on Thursday after a Bloomberg report, cited by CNBC, said the company sent a "force majeure" notice tied to its New Mexico data center project, known as Project Jupiter, to the site's developer, a unit of Blue Owl Capital. The report said the notice was intended to protect Oracle from higher expenses and that the company is looking to delay payment on the campus if it does not come online as expected in 2028.

What the report says happened

According to CNBC, which cited a Bloomberg report sourced to people familiar with the matter, Oracle sent the force majeure notice to the developer of Project Jupiter, its New Mexico data center campus. CNBC reported that the developer is a unit of Blue Owl Capital, the alternative asset manager. Per the same report, the notice is a move by Oracle to protect itself from higher expenses and reflects an effort to delay payment on the campus if it does not come online on schedule in 2028.

The specific contractual terms behind the notice, including the size of the underlying agreement, lease structure or exact payment obligations, were not detailed in the available reporting.

Companies respond

Oracle told CNBC in a statement: "Project Jupiter remains on our planned schedule. We are fully committed to New Mexico and confident in our path forward."

Blue Owl Capital, in its own statement to CNBC, said: "This notice does not change the financial commitments to this multi-year project."

Neither statement, as reported, addressed the specific cause cited in the force majeure notice or disputed the existence of the notice itself.

Bloom Energy and the power question

Shares of Bloom Energy fell 5.4% in pre-market trading Thursday, according to Seeking Alpha, which noted the Project Jupiter site is designed to be powered by Bloom Energy fuel cells. Seeking Alpha linked the move to the reported Oracle notice, which suggests — in our reading, not a claim in the sourced reporting — that investors view the fuel-cell maker's near-term outlook as closely tied to this campus. Beyond Bloom Energy, the available reporting does not identify other named suppliers or utilities as directly exposed to the Project Jupiter notice.

Setbacks tied to a bigger AI buildout

CNBC reported that the New Mexico project is part of the broader Stargate artificial intelligence infrastructure buildout associated with President Donald Trump, and that it "has been riddled with setbacks and regulatory hurdles." Those hurdles, per the report, include local opposition to data centers ahead of the upcoming midterm elections and concerns raised by environmental groups.

CNBC also cited reports indicating that concerns have mounted over Oracle's $18 billion in debt tied to the data center, which the outlet described as already trading at stressed levels. The available reporting does not specify how that debt is structured, nor what share of Oracle's broader AI capacity commitments runs through the Jupiter campus specifically. No analyst commentary on that read-through was included in the sourced reporting.

Reading the market reaction

The 4% decline in Oracle shares and the 5.4% pre-market drop in Bloom Energy shares reflect, in our reading, investor sensitivity to any sign of friction in the financing or timeline of AI data center buildouts that have underpinned much of the recent rally in infrastructure-linked stocks. A force majeure notice is a contractual mechanism companies can invoke to excuse or delay performance obligations when unforeseen circumstances arise; the fact that Oracle apparently sent one, without disputing that action publicly, is itself notable even though both Oracle and Blue Owl Capital emphasized in their statements that the underlying project and financial commitments remain intact. This is our interpretation of the significance of the reported move, not a claim about undisclosed contract terms.

Whether the notice signals a genuine delay risk for the 2028 target or is a more routine risk-management step taken amid regulatory and construction uncertainty is not established by the available reporting. The competing statements from Oracle and Blue Owl Capital, both insisting commitments and schedules are unchanged, sit alongside a Bloomberg-sourced report describing an active effort by Oracle to protect itself from higher costs, a tension that the current record does not resolve.

Bottom Line

Oracle sent a force majeure notice on its Project Jupiter data center to developer Blue Owl Capital's unit, according to a Bloomberg report cited by CNBC, prompting a 4% drop in Oracle shares and a 5.4% pre-market decline in Bloom Energy shares, whose fuel cells are designed to power the site. Both Oracle and Blue Owl Capital publicly maintained that the project and its financial commitments remain on track, even as reports point to mounting concerns over the campus's $18 billion in associated debt and a string of regulatory and local opposition setbacks tied to the broader Stargate AI infrastructure effort.