Oracle has invoked force majeure provisions in an attempt to erect a financial firewall around its massive data center project in New Mexico, a move that adds further uncertainty to the already embattled Project Jupiter and rapidly transmits pressure across the entire financing chain.

According to Bloomberg, Oracle has issued a formal force majeure notice to the project's developer, Stack Infrastructure, a subsidiary of Blue Owl Capital.

The report indicates that Oracle's move is not intended to relinquish its status as the primary tenant, but rather to seek a deferral of payment obligations in the event the project cannot come online as originally planned in 2028.

Following the news, Oracle's pre-market shares fell 4%, Blue Owl Capital's stock dropped 2.3% in tandem, and data center power provider Bloom Energy also declined 4.4% in pre-market trading.

Force Majeure Notice: A Defensive Move With Questionable Legal Effect

Project Jupiter is a massive special purpose vehicle (SPV) project that plans to build four data centers on approximately 1,400 acres of land in New Mexico, providing a total of $300 billion in computing power for OpenAI. The financing structure encompasses bonds, loans, and Blue Owl equity. The issuance of this force majeure notice has sharply heightened market doubts about whether the project can proceed on schedule, with related loans having already fallen to stressed levels.

According to Bloomberg, citing people familiar with the matter, the notice sent by Oracle to Stack Infrastructure is primarily aimed at establishing a contractual protective position for itself in the event of project construction delays, in order to defer potential payment obligations.

Companies typically invoke force majeure clauses when seeking a legal basis to exempt or suspend contractual obligations due to unforeseen circumstances beyond their control. However, the people familiar with the matter also noted that it remains uncertain whether this action can actually absolve Oracle of the financial responsibilities it has already committed to.

In response, an Oracle spokesperson stated: "Project Jupiter remains on track, our commitment to New Mexico is unwavering, and we are confident in the project's prospects." The spokesperson did not specifically comment on the force majeure notice itself. Blue Owl declined to comment.

Project Already Deeply Troubled, Financing Chain Pressure Fully Exposed

Prior to this notice, Project Jupiter had already faced resistance from multiple fronts. According to earlier Bloomberg reports, the project encountered opposition and regulatory setbacks, and related loans had already fallen to stressed levels.

From a structural perspective, Project Jupiter operates as an SPV, constituting an off-balance-sheet financing arrangement that bundles bonds, loans, and Blue Owl equity together, involving several major financial institutions. This highly leveraged financing structure means that any loosening in any single link could trigger a chain reaction across the entire funding chain.

Following the issuance of this force majeure notice, market reactions spread rapidly: Oracle, Blue Owl Capital, and Bloom Energy all fell collectively, indicating that investor concerns about the project's prospects have spread from core participants to the surrounding supply chain.

2028 Launch Target Cast in Shadow, Project Fate Uncertain

People familiar with the matter stated that the direct trigger for Oracle's force majeure notice is precisely the uncertainty over whether Project Jupiter can begin operations as originally planned in 2028. The project had already been hindered by opposition and regulatory obstacles, and Oracle's defensive action has further intensified external doubts about whether the project can materialize.

Market commentators pointed out that Project Jupiter's SPV structure deeply binds the interests of multiple top-tier financial institutions, and once the project experiences substantial delays or even shelving, the potential chain reactions should not be underestimated.

Currently, Oracle insists the project is "on track," but the gap between its actual invocation of force majeure provisions and this public statement has kept investors highly vigilant.