oracle Shares fell 5% on Thursday following news that the company sent a “force majeure” notice related to a data center project in New Mexico to protect itself from increased costs.
“Project Jupiter is proceeding as planned,” Oracle said in a statement to CNBC. “We are committed to New Mexico and confident in our path forward.”
Bloomberg first reported the news, citing sources familiar with the matter.
The company is considering delaying on-campus payments if the campus, called Project Jupiter, does not open in 2028 as expected, according to the report.
Oracle has sent a notice to developers. blue owl capitalThis was confirmed by CNBC. Blue Owl’s stock also fell on Thursday.
“This notice does not change our financial commitment to this multi-year project,” Blue Owl Capital said in a statement to CNBC.
The New Mexico data center project is part of President Donald Trump’s broader Stargate artificial intelligence infrastructure buildout, but it has been plagued by setbacks and regulatory hurdles.
This includes local opposition to the data center ahead of the midterm elections and concerns from environmental groups.
Co-CEO Clay Magouik told analysts on a Sept. 10 earnings call that Project Jupiter will have no impact on the company’s previously mentioned sales or profit outlook for fiscal 2027.
There are also growing concerns about Oracle’s $18 billion in debt related to its data centers, which are already trading at challenging levels, according to the Financial Times.
— CNBC’s Seema Modi and Leslie Picker contributed reporting
