Shares of Bloom Energy fell as much as 7% on Thursday, while Oracle dropped close to 5%, after Bloomberg reported that Oracle sent a force majeure notice tied to Project Jupiter, a large AI data center campus under construction in New Mexico. The notice was sent to the project’s developer, a unit of Blue Owl Capital, and is intended to protect Oracle from extra costs if the facility does not come online as planned in 2028, rather than signal an exit as the main tenant.
Project Jupiter has faced several setbacks. The natural gas pipeline needed to supply power to the facility, developed by Energy Transfer, has been delayed by roughly six months to February 1, 2027, after permit denials and right-of-way issues. The New Mexico State Land Office blocked a request for the pipeline. The data center is designed to use gas-powered fuel cells from Bloom Energy and is expected to have 2.45 gigawatts of capacity.
The project is a major part of the Stargate AI infrastructure buildout involving Oracle, OpenAI, and SoftBank. OpenAI previously signed a $400 billion deal with Oracle and SoftBank to support the development of five US data centers, including the New Mexico site. Oracle said Project Jupiter remains on its planned schedule, with a spokesperson stating the company is “fully committed to New Mexico and confident in our path forward.” Blue Owl also said the force majeure notice does not change the project’s financial commitments.
Financing concerns are already weighing on the development. Around 20 banks provided an $18 billion loan to fund construction, and Bloomberg reported that the debt tied to Project Jupiter was trading below 90 cents on the dollar, indicating investor pressure. Oracle Co-CEO Clay Magouyrk said on the September 10 earnings call that Project Jupiter would not affect the company’s fiscal 2027 revenue or earnings guidance.
For Bloom Energy, Thursday’s drop also followed its official addition to the S&P 500, triggering a “sell the news” reaction. Rising Treasury yields and higher oil prices added pressure on growth-oriented names. Bloom also faces a September 28 lead-plaintiff deadline in a securities class action lawsuit alleging the company misled investors about its reliance on Chinese scandium. In April, Bloom and Oracle expanded their partnership to cover up to 2.8 gigawatts of power capacity, with 1.2 gigawatts already under contract.
