Oracle shares fell 4% on Thursday following news that the company sent a “force majeure” notice tied to its New Mexico data center project to protect itself from higher expenses.
“Project Jupiter remains on our planned schedule,” Oracle said in a statement to CNBC. “We are fully committed to New Mexico and confident in our path forward.”
Bloomberg was first to report the news, citing sources familiar with the matter.
The company is looking to delay payment on the campus, dubbed Project Jupiter, if it fails to come online as expected in 2028, according to the report.
Oracle sent the notice to the developer, which is a unit of Blue Owl Capital, CNBC confirmed. Blue Owl also saw its shares fall on Thursday.
“This notice does not change the financial commitments to this multi-year project,” Blue Owl Capital said in a statement to CNBC.
The New Mexico data center project, which is part of the broader Stargate artificial intelligence infrastructure build-out with President Donald Trump, has been riddled with setbacks and regulatory hurdles.
That includes local opposition to data centers ahead of the upcoming midterm elections and concerns from environmental groups.
Oracle co-CEO Clay Magouyrk told analysts on the company’s earnings call on Sept. 10 that Project Jupiter would not affect its previously stated fiscal 2027 revenue or earnings guidance.
Concerns have also mounted over Oracle’s $18 billion in debt tied to the data center, which is already trading at stressed levels, according to the Financial Times.
— CNBC’s Seema Mody and Leslie Picker contributed reporting.
