Oracle files force majeure on $18B New Mexico Stargate data center over denied gas pipeline permits
mkheck · x · 2026-09-25
Oracle sent a force majeure notice on Project Jupiter, its New Mexico AI data center built for the $400B Stargate deal with OpenAI. The campus needs a 17-mile gas pipeline to power Bloom Energy fuel cells, but New Mexico denied the permits twice; Oracle wants the right to delay payments if the site misses its 2028 opening.
Key facts:
- $18B in project loans now trade at 89-91 cents on the dollar; twenty banks including Santander and Jefferies are stuck with the debt
- ORCL shares fell 5%
- The author argues Oracle's $167B debt load and junk-adjacent credit rating make this the first public admission its balance sheet is worse than priced in
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