Oracle Stock Drops Amid Delays in New Mexico Data Center Project
Oracle (ORCL) shares fell nearly 6.5% on Thursday morning due to delays in the construction of its $165 billion 'Project Jupiter' data center in New Mexico, which is critical for supporting AI infrastructure under President Donald Trump's broader 'Project Stargate.' The project requires a reliable power supply from Bloom Energy’s fuel cells and natural gas supplied by Energy Transfer LP. However, Energy Transfer faces permitting delays for the 17-mile pipeline needed to deliver the gas, pushing back construction timelines. Oracle has invoked force majeure due to these setbacks, which could prevent it from meeting its obligations under a contract with Blue Owl Capital if the data center isn't completed by 2028. The situation highlights systemic risks in AI infrastructure projects that depend on multiple stakeholders across supply chains.
Topics: AI infrastructure data center project Oracle pipeline delays Project Jupiter