The 1,400 acre campus has encountered regulatory setbacks, including twice-denied permits for a 17 mile gas pipeline and water rights disputes that may push the opening past 2028. Construction debt for the project totaling $18B is currently trading below 90 cents on the dollar. Oracle stated that the site remains on schedule and that such notices are common in large-scale developments to preserve contractual rights among project partners.
Tuesday, October 20, 2026
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Oracle Invokes Force Majeure on 2.45GW AI Campus to Defer Payments
Business26 days ago
Oracle has notified the developer of its new Mexico data center that it is citing contractual protections to avoid payment obligations if the site faces further construction delays. The company reportedly sent a force majeure notice to Blue Owl Capital regarding Project Jupiter, a 2.45GW facility tied to a lairge AI buildout for OpenAI. Oracle shares fell up to 5.7% on the news to their lowest level since Aug. 3, while shares of Bloom Energy dropped 6% due to the project's reliance on its fuel cell technology.
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