Oracle sends 'force majeure' notice about data center project
Oracle is reportedly looking to delay payment on Project Jupiter if the data center fails to come online in 2028
TL;DR
- Oracle's stock fell 5% after sending a "force majeure" notice for its New Mexico data center project, "Project Jupiter."
- The notice potentially allows Oracle to delay payment if the data center does not launch by its expected 2028 completion date.
- An Oracle spokesperson stated the project remains on schedule and reaffirmed commitment to New Mexico.
- The developer, a unit of Blue Owl Capital, confirmed the notice does not alter financial commitments.
- The project has faced setbacks, including local opposition and environmental concerns.
- Oracle's Co-CEO previously stated Project Jupiter would not impact fiscal 2027 revenue or earnings guidance.
- Concerns exist regarding Oracle's $18 billion in debt tied to the data center.