Oracle Issues Force Majeure Notice on AI Data Center Project, Raising Delay Concerns

Oracle has issued a force majeure notice to STACK Infrastructure, a unit of Blue Owl Capital, which is developing the Project Jupiter AI data center in New Mexico, USA. A force majeure notice allows a company to pause some contract obligations when events beyond its control affect the project. An Oracle spokesperson said such notices are common in large developments, the project remains on schedule, all parties are aligned, and financial commitments are unchanged.

Investors are questioning whether Oracle can deliver its massive AI infrastructure expansion. Oracle shares fell about 4% on Thursday afternoon. An RBC Capital Markets analyst noted that the force majeure notice signals a change in Oracle's internal assessment of project execution risk, meaning the risk of delay has increased.

Oracle has borrowed billions of dollars to build new data centers. Its first-quarter capital spending reached $28.5 billion, up from $8.5 billion a year earlier. The company maintains its fiscal 2027 capital spending forecast of $90 billion to $95 billion. The analyst said Project Jupiter is one of the key data center projects Oracle plans to use to convert its contract backlog into revenue, and any delay in the 2028 timeline would directly affect capacity delivery and revenue recognition.