Oracle stock declines as AI data center project faces delays

• Oracle (NYSE:ORCL) shares fell after reports that the company invoked a force majeure provision related to a large New Mexico data center project.
• The move is aimed at limiting financial exposure if construction delays push the facility’s opening timeline beyond expectations.
• Oracle reportedly remains committed to the project and is not seeking to exit its role as the primary tenant.

Oracle (NYSE:ORCL) shares declined on Thursday following reports that the company has taken steps to reduce its financial exposure to a major artificial intelligence data center project in New Mexico.

According to Bloomberg, Oracle notified the project developer, a unit of Blue Owl Capital (NYSE:OWL), that it is invoking a force majeure provision related to Project Jupiter.

The provision could allow Oracle to delay certain payment obligations if construction delays prevent the facility from opening on its expected timeline.

Following the announcement, Oracle shares fell about 4%, while Blue Owl Capital shares also moved lower.

Oracle has not indicated that it plans to abandon the project.

A company spokesperson told Bloomberg that Project Jupiter remains on schedule and that Oracle remains committed to New Mexico.

Project Jupiter is part of a broader AI infrastructure initiative involving Oracle, OpenAI, and SoftBank.

The planned New Mexico campus is designed around a power capacity of approximately 2.45 gigawatts, reflecting the growing demand for large-scale computing infrastructure needed for artificial intelligence workloads.

The project has faced regulatory challenges, including the rejection of a key permit, along with public concerns regarding electricity demand and the local impact of large data center developments.