Oracle has issued a force majeure notice to a unit of Blue Owl over potential delays in securing power for a data centre project in New Mexico, according to a person familiar with the matter, reported Reuters.
The notice relates to Project Jupiter, a 1,400-acre data centre campus.
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The project, which secured $18bn in loans from a banks consortium as reported by media, was planned to come online in 2028. Shares in Oracle fell 3.3% following the news, which was first reported by Bloomberg News.
Under the contract, Oracle is responsible for securing power for the site, the source said. The company cannot terminate the lease under any circumstances.
Blue Owl, which owns the data centre developer Stack Infrastructure, holds roughly $3bn in equity in the project, with Oracle covering debt costs.
By invoking force majeure, Oracle is not seeking to exit as the primary tenant but rather to delay payments should the project fail to come online as scheduled, the source said.
The notice extends the period during which Oracle pays Blue Owl a lower development-stage rent. Blue Owl will still receive the higher operational rent for the originally planned duration, but the start date will be pushed back.
Blue Owl said the notice does not alter the financial commitments to the multi-year project. During development, Blue Owl gains a yield of 9% on its equity, with the levered yield expected to reach over 11% upon completion, the source added.
The campus has reportedly encountered several infrastructure setbacks, driven by natural-gas pipeline delays along with legal challenges over air and water permits.
The project forms part of Stargate, a $500bn US AI infrastructure initiative backed by SoftBank Group, OpenAI, Oracle, and other key partners.
