Oracle has declared force majeure on its giant New Mexico data center project, a bad sign for the AI buildout that has been holding up the stock market.

• Project Jupiter, a $165 billion data center campus in southern New Mexico, is at least seven months behind schedule and may take years to finish.
• Local opposition over water use, air quality, and rising power bills has stalled the work.
• Oracle sent a force majeure notice to the developer, a Blue Owl Capital unit, to avoid paying for delays — companies only do this when they want out of a contract.
• The loans backing the site are trading below 90 cents on the dollar, meaning lenders now see real risk of losses.
• Pension and insurance money is tied up in these data center deals, so the pain spreads well beyond Oracle.

Outlook: If the site misses its 2028 target, expect more delays, more distressed data center debt, and pressure on the AI trade propping up stocks.