Oracle's force majeure notice sparks concerns over AI data center timelines

Oracle has issued a force majeure notice to Stack Infrastructure, the developer of Project Jupiter, a planned AI data center in New Mexico, raising questions about its ability to meet delivery deadlines. The notice, reported by Bloomberg, allows Oracle to suspend some contractual obligations due to unforeseen events. Oracle maintains the project is on schedule, but analysts are skeptical. RBC Capital Markets analyst Rishi Jaluria noted the notice signals increased risk of delays, which could impact revenue recognition. Oracle has borrowed tens of billions to fund its AI data center expansion, with first-quarter capital expenditures reaching $28.5 billion, up from $8.5 billion a year earlier. The company’s fiscal 2027 capital expenditure forecast remains at $90 billion to $95 billion. Evercore and William Blair downplayed the financial impact, noting Project Jupiter won’t contribute revenue in the current fiscal year.