Oracle Sends Force Majeure Notice, Shares Plunge 4%: A Warning Sign for AI Data Center Projects?

Oracle (ORCL) shares fell 4% in Thursday trading (24/9/2026) after Bloomberg reported that the company sent a force majeure notice to the developer of a data center project in New Mexico. The move was taken to protect Oracle from potential cost increases if the project, dubbed Project Jupiter, does not operate on schedule in 2028.

The force majeure notice—a clause that releases a party from contractual obligations due to circumstances beyond its control—was sent to a unit of Blue Owl Capital as the developer. Bloomberg cited sources familiar with the matter. Oracle is seeking to delay payments if the project does not come online on target, a signal that the company is beginning to doubt the smooth progress of its ambitious project.

Project Jupiter is part of Stargate, an artificial intelligence (AI) infrastructure initiative promoted together with the administration of President Donald Trump. However, the project has faced various obstacles: regulatory hurdles, local opposition, and political pressure ahead of the midterm elections. Resistance to data centers in the area is growing, amid concerns over environmental impact and massive energy consumption.

For investors, Oracle's move can be read as an aggressive risk management effort. Large-scale data center projects require hundreds of millions of dollars in investment and often face schedule uncertainty. By sending a force majeure notice, Oracle is positioning itself not to bear additional costs if delays occur. However, the move could also spark tension with its development partner and raise market doubts about Oracle's commitment in the AI sector.

"The force majeure move shows Oracle is being cautious about the risk of a ballooning project. The market will watch whether this is merely a negotiating tactic or a signal that the company is retreating from its initial commitment," said a technology infrastructure analyst who did not wish to be named.

The impact does not stop at Oracle. The Stargate project as a whole is part of the United States' broader strategy to strengthen AI sovereignty. If projects like this stall, Washington's ambition to lead the global AI race could be disrupted. Moreover, domestic political pressure in the US ahead of the midterm elections makes the data center issue sensitive, especially in directly affected areas.

Indonesian Context: Lessons for National Data Center Development

For Indonesia, this dynamic is an important mirror. The government is pushing the development of national data centers, including strategic projects such as those in Batam and the Integrated Industrial Estate. However, as in the US, these projects often face regulatory challenges, land acquisition issues, and public opposition. The Oracle case shows that even technology giants can face force majeure risks that disrupt schedules and budgets.

Investors and industry players in Indonesia need to watch how Oracle handles this situation. If a company as large as Oracle faces obstacles, all the more so for projects that may be less mature in their planning. The Indonesian government can take lessons on the importance of legal certainty, dialogue with communities, and flexible financing schemes to anticipate delays.

In addition, dependence on a single development partner or a particular technology can be a risk. Diversifying partners and technology providers is key. In the global context, a slowdown in AI projects in the US could affect the supply and prices of components, which ultimately impacts data center development costs in Indonesia.

Going forward, the question is: will this force majeure notice become a precedent for other AI projects around the world? Or will it instead prompt Oracle to accelerate completion so as not to lose momentum? What is clear is that the market will continue to watch every development, and Oracle's next decision will be an indicator of the direction of the global data center industry.