Oracle's Force Majeure Notice on $18 Billion Data Center Project Rattles AI Infrastructure Financing Market

Oracle has invoked force majeure on a $3 billion-plus AI data center project in New Mexico, placing new scrutiny on loan and lease documents across the AI infrastructure financing sector and raising concerns about the viability of megadeals bankrolling the buildout. The cloud giant issued the notice to Blue Owl Capital, the developer of Project Jupiter, citing potential delays in securing power for the 2.5-gigawatt campus intended to come online in 2028. The move does not trigger a default on the project's $18 billion loan from approximately 20 banks, but it signals Oracle's intent to delay payments to the developer should the facility miss its 2028 target—effectively extending a lower development-stage rent period while pushing the higher operational-stage rent into an uncertain future.