Shares of Oracle fell as much as 5.7% after the company notified the developer of its Project Jupiter site in New Mexico that it will seek to limit its costs if the facility fails to start operations by 2028. The company issued a force majeure notice to a unit of Blue Owl Capital to shield itself from expenditures and potentially delay financial obligations for the 2.45GW campus, which is part of the Stargate AI buildout.
The development has faced regulatory setbacks, including the denial of a key energy permit and a six-month delay for a gas pipeline. Construction debt of $18B for the project is currently trading below 90 cents on the dollar, and Bloom Energy shares also declined since the project relies on its fuel cells. Oracle maintains that the facility remains on schedule and the company is fully committed to the New Mexico site.
Key sources
- SUPPORT@wallstengine“issued a force majeure notice tied to Project Jupiter, the 2.45GW New Mexico data center that is part of the Stargate AI buildout”x.com
- SUPPORT@firstadopter“sent the project’s developer, a unit of Blue Owl Capital Inc., a notice citing force majeure”x.com
- SUPPORT@thestalwart“seeking to assert its contractual position if the build out is delayed”x.com
- SUPPORT@stocksavvyshay“The $165B campus depends on 2.5GW of Bloom fuel cells making this another example of power and permitting becoming constraint on AI infrastructure”x.com
- SOURCEmarketbrief.now
- SUPPORT@deitaone“FORCE-MAJEURE NOTICES ARE COMMONPLACE IN DEVELOPMENTS OF THIS SCALE”x.com
- SUPPORT@amanda_goodall“permitting story. Water rights, a gas pipeline, and a state writing its data center rules in real time”x.com
- SUPPORT@junkbondinvest“this is the $18bn construction loan that FT reported is offered at ~89-91”x.com