Oracle tries to delay $165bn AI loan payments

By the Editorial Team · Friday, September 25, 2026

Oracle has invoked a force majeure clause to delay payment obligations on its $165 billion Project Jupiter data centre in New Mexico due to local opposition and construction delays. This move highlights growing tensions between major AI infrastructure investments and regional regulatory challenges, with potential implications for the future pace of similar projects.

Oracle has issued a formal notice seeking to delay payment obligations related to a $165 billion data centre project in New Mexico amid local opposition and construction delays. The technology company, founded by Larry Ellison, sent the notice to Blue Owl Capital, the project’s main developer and financier, invoking a “force majeure” clause, which is typically used to address circumstances beyond a party’s control.

The data centre, known as Project Jupiter, is a significant component of the growing American artificial intelligence infrastructure, with Oracle positioned as the principal tenant. However, the project has encountered resistance from local authorities in New Mexico, who have threatened to obstruct construction efforts. These challenges have prompted Oracle to seek flexibility in its contractual payment schedule as the timeline for completion faces uncertainty.

The announcement triggered market reactions, with Oracle’s shares declining by 4 pence and Blue Owl Capital’s stock falling more than 3 percent on the day following the notice. Investors have expressed concern over the financial viability of the project amid the increasing political pushback against expansive data centre developments across the United States.

Despite the move to delay payments, Oracle officials maintain that the project remains on schedule. Michael Egbert, vice-president at Oracle, affirmed the company’s continued commitment to Project Jupiter and its confidence in advancing the initiative in New Mexico. Blue Owl Capital echoed this sentiment, stating that both parties remain aligned on the project and that the issuance of the force majeure notice does not alter their financial commitments to the multiyear undertaking.

Project Jupiter represents one of the largest planned investments in AI-related infrastructure within the United States, illustrating the tensions between rapid technological expansion and local regulatory and community concerns. The outcome of these negotiations and regulatory challenges will likely influence future developments in the sector.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.