Oracle Issues Force Majeure on $2.45B Data Center, Bloom Energy Slides
ORCL sits 21% above its 52-week low of $114.5.
Summary
Oracle has sent a force majeure notice to Blue Owl Capital, the developer of its massive Project Jupiter data center in New Mexico, seeking to avoid payments if the 2.45 GW facility misses its 2028 online date. Blue Owl Capital has invested $3 billion in the project and borrowed up to $20 billion from Goldman Sachs and others. The project has already faced delays, including a stalled natural gas pipeline approval. The notice is not a default, but it signals Oracle is bracing for further setbacks and could alarm lenders; project debt already trades below 90 cents on the dollar. Bloom Energy, whose fuel cells are slated to power the site, fell 3% as investors question its 2027-2028 revenue targets, though analysts note its 1.2 GW agreement with Oracle spans multiple projects and is not tied solely to Jupiter. Oracle shares fell 3.3% on Sept. 24 and were down 0.8% on Sept. 25. This follows Oracle's Q1 FY27 blowout and $20B ATM completion, but the data center delay adds a new risk to its aggressive capex plans.
Updated with a Reuters report · What changed
Updates
· Reuters — Oracle's force majeure notice was sent to Blue Owl Capital, which has invested $3 billion in the project and borrowed up to $20 billion from Goldman Sachs and others. Oracle shares fell 3.3% on Sept. 24 and were down 0.8% on Sept. 25.
· CNBC TV18 — Oracle Financial Services Software shares fell over 5% on the news. William Blair expects limited near-term impact on Oracle, with no fiscal 2027 revenue from Project Jupiter.
At the time of this announcement, ORCL was trading at $138.90 on NYSE in the Technology sector, with a market capitalization of approximately $421.9B. The 52-week trading range was $114.50 to $322.54. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Seeking Alpha.