Oracle (ORCL) stock fell roughly 4% after news broke that the company sent a force majeure notice to the developer behind its Project Jupiter data center in New Mexico. Blue Owl Capital (OWL) dropped 4%, and Bloom Energy (BE) slid 6% on the same report.

The notice, first reported by Bloomberg, is designed to protect Oracle from financial liability if the massive AI facility fails to hit its planned 2028 launch date. Oracle is the main tenant of the site.

Project Jupiter is being developed by Stack Infrastructure, a Blue Owl Capital portfolio company. The campus is designed to deliver 2.45 gigawatts of power, enough to supply roughly 1.8 million homes — a scale that places it among the largest data center builds tied to the AI boom. Despite that ambition, the project has run into a practical problem: water and power. Power and water constraints have become a recurring feature of large-scale AI data center development.

Why the Pipeline Matters

Oracle partnered with Bloom Energy to run the campus on solid oxide fuel cells, which are well suited to New Mexico's dry climate because they require very little water to generate electricity. The catch is that the fuel cells still need a steady flow of natural gas to operate.

That gas is expected to arrive through a 17-mile pipeline called the Green Chile Project, operated by Energy Transfer. The pipeline was originally targeted for completion in August 2026 but has been pushed back to February 2027.

The delay stems from New Mexico's State Land Office repeatedly denying right-of-way permits across state trust lands. Local officials and environmental groups have raised concerns about climate impact and resource strain.

Without the pipeline, Bloom's fuel cells cannot run. That leaves the campus without a working power source for the time being, since the facility's power plan is built around the fuel-cell arrangement.

Force majeure clauses allow companies to pause contractual obligations when something unexpected and unavoidable gets in the way. Oracle says it invoked the clause as a precaution, and the company maintains that "Project Jupiter remains on our planned schedule." The filing nonetheless suggests real concern about whether the timeline will hold.

What's at Stake Financially

About 20 banks put together an $18 billion loan to help finance the campus. That places a substantial pool of capital behind a project now contending with a stalled pipeline and local pushback. Facilities of this kind are typically drawn against construction progress, which keeps the build schedule central to the financing.

Even if Oracle wins some breathing room from Blue Owl on payments, the standoff could raise questions for the lenders backing the build. The dispute adds new complication to a project that has been in the works for nearly two years.

Oracle has not said whether the force majeure notice would fully release it from its existing financial commitments tied to the project. Bloomberg reported the news, citing people familiar with the matter.

Part of the Stargate Initiative

Project Jupiter is not a standalone effort. It forms part of the broader Stargate initiative, which also involves OpenAI and SoftBank and is focused on building large-scale AI infrastructure. The initiative was announced at the White House in January 2025, with President Trump appearing alongside executives from all three companies. At the time, it was described as a plan to invest up to $500 billion in U.S. AI infrastructure over four years.

SoftBank (SFTBY) shares fell around 6% following the report. The declines across Oracle, Blue Owl, Bloom Energy, and SoftBank reflect how tightly the companies' fortunes have become linked through their shared AI infrastructure investments. The concrete dates to watch from here are the pipeline's revised February 2027 completion target and the campus's planned 2028 launch.