Oracle Shares Slide After Force Majeure Notice on New Mexico AI Data Center

Oracle shares fell 3.48% Thursday, Sept. 24, 2026, closing at $139.53. The drop came after the company sent a force majeure notice to Blue Owl Capital, the firm that owns the developer of its Project Jupiter data center in New Mexico.

Bloomberg first reported the notice, according to Forbes.

It's a legal step that doesn't signal Oracle is abandoning its role as the site's primary tenant. The move lets Oracle limit its exposure to cost and payment risk if the project stalls.

Force majeure typically applies to extreme events beyond a company's control, like a natural disaster, Forbes reported. Oracle could try to delay payments if the project stalls before 2028.

Whether that tactic holds up remains unclear, according to sources who spoke to Bloomberg.

Both Sides Downplay a Delay

Oracle vice president Michael Egbert pushed back. He told Forbes the Project Jupiter site remains on schedule. He said he's confident about moving the New Mexico development forward.

Egbert added that force majeure notices are common in developments of this scale, typically used to preserve contractual rights between project partners. The notice alone, he said, does not establish a delay or change delivery expectations.

Blue Owl told Bloomberg the two companies remain fully aligned and that the notice does not change its financial commitments to the multiyear project, Forbes reported.

Part of a $500 Billion AI Buildout

OpenAI, Oracle and SoftBank launched the $500 billion Stargate Project, of which Project Jupiter is one piece, in 2025, unveiled alongside President Donald Trump at the White House, according to Forbes.

Doña Ana County, New Mexico, where the site sits, has published a fact sheet estimating a minimum initial investment of $50 billion. It projects potential investment of $165 billion over 30 years.

Oracle has said the project could bring $4.7 billion in economic benefits to the state. The numbers are staggering.

Oracle previously lined up $18 billion in loans from a group of banks to help fund the New Mexico buildout. Bloomberg reported the financing last November, according to Forbes.

That financing came as Oracle's overall debt load climbed alongside its AI infrastructure spending, a run-up detailed in Oracle's debt load.

Local Opposition and a Nervous Market

The New Mexico site has already survived legal challenges that reached the state Supreme Court, Forbes reported. Opposition remains strong nonetheless. A recent poll cited by Forbes found nearly 70% of voters across both parties oppose further data center construction.

The market reacted fast. Shares briefly fell more than 6% at the open before paring losses. Oracle's stock traded down 4.4% by midday before closing at $139.53, Forbes reported.

Trading volume reached about 56.2 million shares, roughly 68% above Oracle's three-month average of 33.4 million shares. The cost of insuring Oracle's debt against default also climbed to a record high Thursday.

Investors were weighing the risk tied to the company's AI infrastructure spending.