President's Pride: Giant Data Centre Project Faces Risk of Failure
Oracle’s massive data centre project in New Mexico, USA, is facing several serious obstacles. The company has reportedly issued a force majeure notice regarding this ambitious project, which is part of the ‘Stargate’ Artificial Intelligence (AI) infrastructure development under the US administration.
This unwelcome news immediately impacted Oracle’s share price on the stock exchange. The technology company’s shares were recorded to have fallen by more than 3% during Thursday (24/9) local trading.
Oracle is said to be seeking a deferment of payments for the project, named Project Jupiter, should the facility fail to become operational according to the schedule set for 2028.
Nevertheless, Oracle is attempting to quell public concern. “Project Jupiter remains on schedule as we have planned. We are fully committed to New Mexico and confident in our steps forward,” Oracle wrote in an official statement, as quoted from CNBC International, Friday (25/9/2026).
A similar tone was conveyed by their financing partner, Blue Owl Capital. The investment firm emphasised that the force majeure notice would not alter their funding commitment. “This notice does not change the financial commitment to this multi-year project,” stated Blue Owl.
For context, Project Jupiter is a massive data centre facility with a jumbo capacity of over 2.4 gigawatts. However, its construction has not been smooth, facing various hurdles ranging from regulatory issues and strong opposition from local residents to protests from environmental groups.
The project has become increasingly complex due to difficulties in constructing the natural gas pipeline network, which is crucial for supplying the massive energy requirements to the facility. The wave of opposition to the massive scale of data centre construction has even become a hot issue being watched ahead of the US midterm elections.
Meanwhile, Bloom Energy—the company partnered to supply electricity to the facility using fuel cell technology—has also been affected, with its share price dropping by approximately 3%. Nonetheless, Bloom Energy’s management has ensured that they remain fully committed to the agreed contracts and project schedule.
On the other hand, Oracle CEO Clay Magouyrk stated in the company’s performance report on 10 September that Project Jupiter would not have a negative impact on Oracle’s revenue or profit projections for the 2027 fiscal year.
However, the project remains under intense scrutiny from financial markets regarding its debt burden. Oracle is known to be carrying approximately US$18 billion in debt directly related to the construction of the data centre. According to reports from the Financial Times, the debt bonds are currently trading at levels reflecting increased pressure on the project’s financing.