Oracle's Project Jupiter Hit by Pipeline Delays and Financial Worries
Oracle's stock fell by about 4% after the company issued a force majeure notice on its Project Jupiter data center in New Mexico, citing concerns over delayed completion. The project, which is set to deliver 2.45 gigawatts of power, has faced delays due to issues with a natural gas pipeline that was originally scheduled for August 2026 but has now been pushed back to February 2027.
The notice aims to shield Oracle from payments if the facility misses its planned 2028 launch date. The company partnered with Bloom Energy to run the campus on solid oxide fuel cells, which require a steady flow of natural gas to operate. However, without the pipeline, the power source for the project is in jeopardy.
The delay has significant financial implications, as about 20 banks have put together an $18 billion loan to help finance the campus. If Oracle wins some breathing room from Blue Owl on payments, it could still rattle the lenders backing the build. The standoff adds a new wrinkle to a project that's already been in the works for nearly two years.