Oracle, Blue Owl Data Center Delay Raises Concerns Over AI Financing

Post by : Saif

Oracle’s move to protect itself against delays at a major data center project in New Mexico is raising fresh questions about how AI infrastructure projects are financed.

Project Jupiter, developed by Blue Owl’s STACK Infrastructure for OpenAI, is facing a delay of about one year, according to a person familiar with the deal. Oracle has issued a force majeure notice linked to the project, citing delays in securing power for the site.

Blue Owl said the notice does not change the companies’ financial commitments to the multiyear project.

Blue Owl Has Billions Invested in Project Jupiter

Blue Owl has about $3 billion of equity invested in Project Jupiter, according to a person familiar with the project’s terms.

The delay could affect when Blue Owl begins receiving higher returns because those returns increase after the data center becomes operational. Construction delays therefore create a direct financial impact for the project’s investors.

The situation is being watched closely by banks and investors involved in other large AI data center projects.

AI Infrastructure Financing Faces More Scrutiny

The Project Jupiter delay comes as lenders become more cautious about the rapid expansion of AI infrastructure.

AI data centers require huge amounts of capital, while projects also face challenges involving electricity supply, construction, financing, permits and local opposition.

Lawyers and industry experts say force majeure clauses are becoming more common in data center contracts. These provisions can protect companies when events outside their control prevent them from meeting contractual obligations.

The issue is becoming important for lenders because they need to understand who carries the financial risk when a major project is delayed.

Read more: OpenAI and Microsoft Set $38 Billion Limit in AI Revenue Deal

AI Spending Could Reach $1 Trillion

The financing concerns come as spending on AI infrastructure continues to grow rapidly.

Moody’s estimates that capital spending by the six largest US technology companies could reach about $1 trillion in 2027. Morgan Stanley has estimated that AI infrastructure could require around $1.5 trillion in external financing by 2028.

That scale of investment is increasing scrutiny of whether financial markets can absorb the expected volume of borrowing and investment without higher financing costs or tighter lending conditions.

Other Data Center Projects Face Challenges

Project Jupiter is not the only major AI infrastructure development facing difficulties.

SB Energy, which is developing a data center campus in Ohio for OpenAI, delayed its IPO this week, according to the report. Blue Owl also previously faced difficulties syndicating financing for a $4 billion data center project in Lancaster, Pennsylvania, linked to CoreWeave.

Several other projects have faced opposition from local communities. Data Center Watch said at least 45 projects worth $68 billion faced community opposition during the second quarter of 2026, following disruptions involving 75 projects worth about $130 billion in the first quarter.

Oracle and Blue Owl Shares Fall

Oracle shares fell 3.5% on Thursday following reports about the force majeure notice, while Blue Owl shares declined 3.6%.

Other large data center developments have also encountered resistance. Projects linked to Meta in El Paso, Texas, and Related Digital’s planned $16 billion Oracle-focused campus in Michigan have faced opposition from local residents.

Blackstone’s QTS also terminated its planned Digital Gateway data center project in Virginia in July after years of planning and regulatory review.

The developments show how financing, electricity access, construction delays and community opposition are becoming important factors for investors assessing the rapid expansion of AI infrastructure.

#trending #latest#Oracle #BlueOwl #ProjectJupiter #AIInfrastructure #ArtificialIntelligence #DataCenters #DataCenterNews #OracleNews #AIFinancing #TechNews #CloudComputing #OpenAI #DataCenterInvestment