Oracle Shares Fall as New Mexico AI Data Center Faces Power Delays

Oracle Corp. shares fell after reports that the technology giant is seeking protection from financial obligations linked to its massive artificial intelligence data center project in New Mexico amid regulatory and infrastructure challenges.

According to Bloomberg, Oracle issued a force majeure notice to the project’s developer, a unit of Blue Owl Capital, potentially allowing it to suspend certain payments if the facility misses its planned 2028 launch. Oracle said the move is precautionary and maintained that “Project Jupiter remains on our planned schedule.”

The report pressured companies connected to the development. Oracle shares dropped about 4%, while Blue Owl Capital, whose portfolio includes developer Stack Infrastructure, also declined roughly 4%. Bloom Energy shares fell as much as 6%, reflecting its significant involvement in powering the campus.

Known as Project Jupiter, the $165 billion development in southern New Mexico is part of the broader Stargate AI infrastructure initiative. The campus is designed to support 2.45 gigawatts of power capacity, roughly equivalent to the electricity consumption of 1.8 million homes.

Oracle selected Bloom Energy’s solid oxide fuel cells to supply electricity to the facility. The technology requires relatively little water, an important advantage in New Mexico’s dry climate, but depends on a reliable natural gas supply.

That requirement has become a major obstacle. Energy Transfer’s proposed 17-mile Green Chile natural gas pipeline has been delayed from August 2026 to February 2027 after the New Mexico State Land Office repeatedly rejected right-of-way applications across state trust lands. State officials and environmental groups have raised concerns about climate impacts and local resource pressures.

Without the pipeline, Bloom Energy’s fuel cells cannot provide the planned power supply, creating uncertainty around the data center’s construction timeline and financing.

KeyBanc analyst Jackson Ader said the dispute also highlights risks in Oracle’s leasing strategy, where payment obligations may arrive before delayed facilities begin generating revenue. He added that Oracle could feel infrastructure setbacks more sharply than larger hyperscale rivals because of its comparatively tighter cash position.

Project Jupiter illustrates a broader challenge facing the AI data center boom: securing chips and financing is not enough when enormous projects also depend on energy infrastructure, regulatory approvals and local support.