Oracle Sends Force Majeure Notice Over Stalled New Mexico Data Center, Dragging Bloom Energy Down With It

Oracle shares fell 2.8% after the company sent a force majeure notice to the developer of Project Jupiter, a massive New Mexico data-center campus, seeking to protect its contractual position if the facility is delayed or fails to open as planned. The ripple effects reached beyond Oracle itself: Bloom Energy, the project's primary energy provider, fell nearly 6% in pre-market trading.

What Oracle actually did

Oracle sent the force majeure notice to the developer of Project Jupiter, a unit of Blue Owl Capital, rather than to any of its energy or construction partners directly. According to people familiar with the situation, the notice could allow Oracle to defer payments if the project is derailed — a defensive contractual move rather than a cancellation. It remains uncertain whether successfully invoking force majeure would actually release Oracle from its previously agreed financial obligations on the project, a question that will likely depend on the specific contract language and how any dispute plays out.

A 1,400-acre campus with stalled permits

Project Jupiter is a 1,400-acre data-center campus in Doña Ana County, New Mexico — the kind of large-scale AI infrastructure buildout that's become central to the sector's growth story. Construction has continued at the site despite paused permitting processes involving water use and air quality, a combination that creates real regulatory uncertainty about the project's ultimate timeline even as physical building work moves forward.

Why Bloom Energy is caught in the crossfire

Bloom Energy is the primary energy provider for the Project Jupiter data center, which is why its stock fell alongside Oracle's despite having no direct role in the force majeure dispute itself. If the project's opening is delayed or its scope changes, Bloom's expected revenue from powering the campus would be directly affected — explaining why the market moved BE shares almost as sharply as it moved Oracle's on the news.