Oracle shares fall approximately 5% following news of the force majeure notice
Following·Day 204·first covered 7 Mar 2026·5 sources
Oracle Invokes Force Majeure on New Mexico Stargate Data Center
The gist
State-level pipeline permit denials have disrupted the financing arrangements underlying one of the Stargate initiative's flagship sites, demonstrating that regulatory obstacles can trigger contractual protections with financial consequences. Oracle reported capital expenditure of $28.5 billion last quarter and negative $5.4 billion free cash flow, making payment deferrals on major projects financially relevant.
The full picture
Oracle sent a force majeure notice to Blue Owl Capital on September 24, 2026, covering Project Jupiter, a Stargate AI data center campus in New Mexico. The notice allows Oracle to defer lease payments if the facility misses its 2028 opening target but does not permit Oracle to exit the contract as the site's main tenant. State officials have repeatedly denied permits for a gas pipeline required to power the project, which is the primary obstacle cited for the delay. Oracle shares fell approximately 5% following the news. Project Jupiter is part of the broader $500 billion Stargate initiative co-launched by Oracle, OpenAI, SoftBank, and President Donald Trump. Oracle values its total Stargate contract at $300 billion over its lifetime and that contract is described as still on track despite the New Mexico complications. Oracle has also launched a public outreach campaign in New Mexico to address local criticism of the project.
How it developed
OpenAI and Oracle abandon Texas Stargate expansion; broader $500 billion initiative described as on track, Oracle announces $50 billion fundraise for datacenter buildout
Sources
Semafor Technology
- 🟡 A cure for loneliness
Transformer News
startupfortune.com
theregister.com
The daily email
Want this in your inbox?
I send one email each morning with the stories that moved. If you would rather just read here, that works too.
Subscribe free