Oracle force majeure on Project Jupiter NM DC

Opening

Oracle sent a force majeure notice to the Blue Owl unit developing its New Mexico Stargate campus (Project Jupiter), seeking to delay payments if the site misses a 2028 online date — Bloomberg first, confirmed by CNBC. CNBC (Samantha Subin) says Oracle shares fell about 4% Thursday on the report; Blue Owl also fell. Oracle is not exiting as main tenant; the notice asserts contractual position if build-out is delayed, per Bloomberg sources via CNBC and TechCrunch. Oracle told CNBC: “Project Jupiter remains on our planned schedule… fully committed to New Mexico.” Blue Owl told CNBC the notice “does not change the financial commitments to this multi-year project.” Bloomberg Law (Sridhar Natarajan) adds that if both sides agree a force majeure event tied to power commitments has occurred, Oracle could win a three-year delay on rent when payments commence, while still owing other interim costs and the full lease term once rent starts (person familiar).

The numbers

Online target — 2028 — Bloomberg via CNBC / TechCrunch.

Campus design — 2.45 GW; Bloom Energy gas fuel cells; Energy Transfer gas pipeline delayed ~6 months to Feb 1, 2027 after NM State Land Office permit denials — Bloomberg / TechCrunch.

Air-quality permit for fuel-cell power — NM environment department decision deadline Nov 23 — TechCrunch.

Construction loan — ~$18B from ~20 banks; project debt trading below 90¢ on the dollar (stressed) — Bloomberg Law (person familiar).

ORCL −4.4% midday; Blue Owl −3.7%; Oracle CDS at a record high Thursday — Bloomberg Law.

Possible rent delay if FM agreed — up to three years after commencement — Bloomberg Law (person familiar).

Update — 2026-09-25

WSJ published a Friday piece framing Project Jupiter as showing “cracks” in Oracle’s AI data-center build-out, citing the force majeure notice, removal of a key partner, and local resistance (WSJ). The publicly visible lede says Oracle made aggressive financial commitments with little wiggle room; full body was paywalled in this capture.

Hell-or-high-water lease claim — @RealNickMugalli (citing a WSJ screenshot) says the New Mexico lease has “hell or high water” terms so it cannot be terminated and rent is owed whether or not the site has power (post). Screenshot-sourced; treat as unverified until the underlying WSJ/contract language is read primary.

Barclays (via ZeroHedge) — on the force majeure: “the hardware capex should also be delayed (~$30bn; typically spent 2–3 months ahead of the asset going live)” (ZH post). Analyst view, not a company disclosure.

Oracle Japan — Japanese subsidiary printed record fiscal 1Q sales (+13% YoY to ¥74.86B) with cloud revenue +31.7%; shares +>7% Friday while U.S. ORCL fell on the FM news (CNBC). Separate legal entity; does not negate the Jupiter lease story.

Why it matters

Contractual risk-shifting on a flagship Stargate shell (Oracle / OpenAI / SoftBank) as power and permits slip — lease resilience and lender nerves matter even when the tenant and developer both say the schedule is unchanged.

Positioning

AI capex durability — A precautionary force majeure plus stressed project debt is schedule/financing friction, not a hyperscaler demand cut; the break would be explicit cancelation, guidance cuts, or RPO write-downs — not the notice alone. Magouyrk on the Sep 10 earnings call said Jupiter would not affect previously stated FY27 revenue or earnings guidance (CNBC).

Connects to

BlackRock/IFM Stack Asia talks — Same Blue Owl / Stack DC ownership stack (news).

CleanSpark Meta-tied DC junk bond — Contrast: hyperscaler-backed HY still clearing vs Jupiter debt <90 (news).

Akamai–Anthropic $11.6B CPU cloud — Same overnight window: large lab offtake clearing while Jupiter lease stress trades (news).