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Photo: Reuters

Oracle Stock Falls 6% on Project Jupiter Force Majeure

Bloomberg Law2 min read6 sources

Why is Oracle stock down today?

Oracle (ORCL) stock fell 6.4% to $137 on Thursday after invoking a force majeure clause on Project Jupiter, its Stargate-linked New Mexico data center, pushing $18 billion in construction loans to distressed levels.

Key numbers

ORCL 1-day drop-6.4%to ~$137, worst S&P 500 tech stock Sep 24
Construction loans$18Btrading at 89–91 cents on dollar (per [1])
Blue Owl (OWL) drop-4.2%same day as Oracle force majeure disclosure
Project Jupiter total cost$165B1,400 acres, 2.45 GW over 30-year campus life
Oracle cloud revenue growth+62%Q1 FY2027 year-on-year — underlying business still expanding
Pipeline delay6 monthsin-service date pushed from Aug 2026 to Feb 2027

What happened

Oracle (ORCL) stock fell 6.4% to $137 on Thursday after invoking a force majeure clause on Project Jupiter, its Stargate-linked New Mexico data center, pushing $18 billion in construction loans to distressed levels. Oracle sent the notice to Stack Infrastructure, a developer backed by Blue Owl Capital, to preserve the right to defer rent payments if the 2.45-gigawatt campus misses its 2028 opening deadline. The trigger is a natural gas pipeline denied right-of-way twice by the New Mexico State Land Office, pushing its completion from August 2026 to February 2027 and leaving the campus without confirmed power. Blue Owl Capital (OWL) shares also fell 4.2% on the news.

Why it matters

Oracle stock's drop shows how a single regulatory dispute — a denied pipeline permit in New Mexico — can shake a $400-billion technology company and ripple into the broader AI construction boom. Project Jupiter is a cornerstone of Stargate, the $500 billion U.S. AI infrastructure program linking Oracle, OpenAI, and SoftBank, so delays threaten more than Oracle's own earnings. The $18 billion in syndicated loans now trading below face value could signal growing financial risk across the wave of AI data center projects being built nationwide.

Who this affects

Marketbearish
High impact
AI data center construction loans face growing distress risk.
Companybearish
High impact
Oracle faces cost risk if Project Jupiter is delayed.
Competitorsmixed
Medium impact
Cloud rivals gain if Oracle's AI capacity lags.
Industrybearish
Medium impact
Data center builders face rising permitting and power risks.

Oracle vs Microsoft, Amazon, Alphabet

OracleORCL$418B-6.4%-29%17x
MicrosoftMSFT$3.68T—+4%25x
AmazonAMZN$2.66T—+12%24x
AlphabetGOOGL$4.15T—+8%25x

As of 2026-09-24

How we got here

  1. Trump announces $500B Stargate AI initiative with Oracle, OpenAI, SoftBank.

  2. Construction begins at Project Jupiter; Oracle confirmed as anchor tenant.

  3. NM State Land Office denies pipeline right-of-way a second time.

  4. NM Supreme Court pauses all Project Jupiter permitting processes.

  5. Oracle invokes force majeure on Project Jupiter; ORCL falls 6.4%.

What to watch

  • Federal land permit decision for Energy Transfer pipeline reroute.2027-02-01
  • Oracle management comments on Project Jupiter at next earnings.Q4 2026
  • Construction loan trading levels — watch for slide below 89 cents.Q4 2026

Educational content only. Not investment advice.

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