TLDR
- Oracle and STACK Infrastructure confirmed no critical infrastructure was damaged at the Project Jupiter site after flooding hit southern New Mexico.
- The project remains on its original schedule.
- Oracle stock dropped about 5% last week after the company filed a force majeure notice tied to the same site.
- Project Jupiter is a 2.45 gigawatt data center campus built as part of the Stargate AI effort with OpenAI and SoftBank.
- Roughly 20 banks backed the project with an $18 billion loan.
Oracle (ORCL) stock fell close to 5% last Thursday after news broke that the company had filed a force majeure notice connected to its New Mexico data center build. That filing was meant to protect Oracle from extra costs tied to delays at the site.
On Wednesday, Oracle and its partner STACK Infrastructure gave an update. They said flooding had reached the Project Jupiter campus in southern New Mexico, but no critical infrastructure was damaged.
The companies said the project is still on its planned schedule.
Project Jupiter is a large data center campus. It’s designed to hold 2.45 gigawatts of capacity once finished.
The site is a key piece of the Stargate artificial intelligence infrastructure buildout. That effort includes Oracle, OpenAI, and SoftBank (SFTBY).
What the Statement Said
In a joint statement, Oracle and STACK focused first on the local community. They said their attention was on neighbors affected by the floods, including damaged homes, farms, and roads.
They said they’re listening to local leaders to find ways to help with recovery.
On the data center itself, the message was short and direct. Flooding reached the campus, but nothing critical was harmed.
Oracle and STACK said they’re now working with partners and insurers to assess any impacts at the site.
The facility is expected to run on fuel cells supplied by Bloom Energy (BE).
The Financing Behind the Project
Project Jupiter isn’t a small undertaking. About 20 banks came together to provide an $18 billion loan to help finance the campus.
That kind of backing shows how much money is riding on AI infrastructure projects like this one right now.
The force majeure notice from last week raised questions about whether the flooding could push back construction or add new costs.
Wednesday’s statement was Oracle’s attempt to answer that directly. The company says the schedule hasn’t changed.
Investors will likely keep watching for any further updates on repair costs or insurance claims tied to the flood damage.
For now, Oracle’s position is that the New Mexico flooding caused no damage to anything critical at the Jupiter site, and the build continues on track.
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