Oracle Financial Services Software (OFSS) shares fell more than 5% intraday on Friday, September 25, after parent Oracle issued a force majeure notice covering possible power delays at its Project Jupiter data center in New Mexico. The campus is intended to provide AI computing capacity for OpenAI.
The stock touched Rs. 10,332 on the National Stock Exchange before recovering to Rs. 10,572, down 3.2% for the session. For the week, OFSS was down about 11%, putting it on track for its steepest weekly decline since January 2025, when it fell more than 12%.
Why Oracle issued the notice
Blue Owl’s STACK Infrastructure is developing the 1,400-acre Jupiter campus in Doña Ana County. A person familiar with the agreement told Reuters that Oracle issued the notice because of possible delays in securing power. Under the contract, Oracle is responsible for arranging power for the site.
Bloomberg reported that Oracle aims to delay certain payments if Jupiter misses its planned 2028 opening. Oracle is not seeking to exit as the campus’s main tenant, and a person familiar with the agreement said the company cannot terminate the lease.
Oracle said Jupiter remains on its planned schedule. Blue Owl said the notice does not change the companies’ financial commitments. Both companies maintain they remain committed to the project.
Financing and project pressures
Jupiter has already faced setbacks involving a planned natural gas pipeline and challenges related to water and air-quality permits. The campus is part of Stargate, the AI infrastructure initiative involving OpenAI, Oracle, SoftBank and other partners. Securing power remains a key step toward opening the facility.
Blue Owl has about $3 billion of equity in Jupiter, while Oracle is responsible for debt costs, according to a person familiar with the agreement. Blue Owl earns a lower return during construction and expects a higher return after completion. A later opening would push back the start of those higher payments.
Concerns about financing have also weighed on the project. Last week, banks quoted about $18 billion in loans tied to the campus at 89 to 91 cents on the dollar, as worries about Oracle’s borrowing and site setbacks made the debt harder to sell to investors.
Near-term revenue impact
Brokerage William Blair expects limited near-term effects on Oracle despite the power and regulatory concerns. It said Jupiter will contribute no revenue in Oracle’s fiscal 2027, leaving that year’s revenue unaffected by the campus’s delivery timetable.
The notice has renewed attention on the costs and schedules behind large AI data centers. It does not indicate that OpenAI has reduced its demand for computing capacity. For OFSS, the development added to a week of sharp share losses as investors track Jupiter’s power supply and its planned 2028 opening.
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