Oracle Falls 3.4% After Force Majeure Notice on New Mexico Data Center

Bloomberg··US·Read original
4▲0 ▼3Impact / 5
Summary · why it matters

Oracle shares fell 3.4% in the afternoon session after CNBC reported the company sent a force majeure notice to the developer of its New Mexico data center project to shield itself from higher expenses. As initially reported by Bloomberg, the enterprise software giant is seeking to delay payments on the campus, dubbed Project Jupiter, if the facility fails to come online as expected in 2028, and the developer receiving the notice is a unit of Blue Owl Capital, whose shares also declined. The New Mexico facility is a critical component of the broader Stargate artificial intelligence infrastructure build-out, but it has been beset by regulatory hurdles, local opposition ahead of upcoming midterm elections, and environmental group concerns. Investors sold the stock on fears of delayed AI capacity and financial strain, particularly after the Financial Times reported that the $18 billion in debt tied to the data center is already trading at stressed levels. Oracle said in a statement to CNBC that Project Jupiter remains on schedule and that it is fully committed to New Mexico, and co-CEO Clay Magouyrk told analysts on the company's September 10 earnings call that the data center would not negatively affect its previously stated fiscal 2027 revenue or earnings guidance. The shares were trading at $139.59, down 3.6% from the previous close.

Impact on assets 3

Financials▼ · 2 stocks
Blue Owl Capital Corporation
OBDC
▼ NegativeCapitalrelevance

Blue Owl unit received Oracle's force majeure notice on the New Mexico data center, and its shares declined.

Blue Owl Capital Inc
OWL
▼ NegativeCapitalrelevance

Blue Owl Capital's unit is the developer receiving Oracle's force majeure notice on Project Jupiter, and its shares declined.

Cloud & Digital Infrastructure▼ · 1 stocks
Oracle Corporation
ORCL
▼ NegativeCapitalrelevance

Oracle sent a force majeure notice to delay payments on its New Mexico data center amid stressed $18B debt and fears of delayed AI capacity.

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