Oracle Financial Services shares set for their worst week in 20 months; Here’s what is concerning the street

Shares of Oracle Financial Services Software (OFSS) fell more than 5% on Friday, September 25, amid concerns around potential delays to a large data centre project being developed for parent company Oracle.

The pressure on OFSS comes after Oracle Corp issued a “force majeure” notice to a Blue Owl unit developing a large data centre campus in New Mexico, citing potential delays in securing power for the project, Reuters reported on Thursday, September 24.

What happened with the data centre project?

The notice relates to Project Jupiter, a 1,400-acre data centre campus that is part of Oracle’s broader agreement with OpenAI to provide artificial intelligence (AI) computing capacity.

According to the report, securing power for the site is Oracle’s responsibility under the contract. Oracle cannot terminate the lease, but is seeking to delay payments if the data centre project is derailed and does not come online as planned in 2028, Bloomberg News reported.

Oracle said earlier that Project Jupiter remains on its planned schedule, while Blue Owl said the notice does not change its financial commitments to the multi-year project.

Blue Owl owns the data-centre developer Stack Infrastructure. The alternative asset manager has around $3 billion in equity in the project, while Oracle is responsible for the debt costs, according to the Reuters report.

Project faces infrastructure challenges

Project Jupiter has reportedly faced several infrastructure-related setbacks, including delays to a planned natural-gas pipeline and legal challenges involving water and air-quality permits.

The campus has secured $18 billion in loans from a consortium of banks, according to media reports, and forms part of Stargate, the AI infrastructure initiative involving OpenAI, SoftBank Group and other partners, with a stated $500 billion investment commitment.

The developments come as data-centre developers face challenges in securing power and other resources amid the rapid expansion of AI infrastructure in the US.

What analysts say

Brokerage William Blair said the development increases concerns around regulatory and power-related delays to AI deployments, but expects limited near-term impact on Oracle.

According to the brokerage, fiscal 2027 should not be affected because Project Jupiter is not expected to contribute revenue during the year.

Oracle Financial Services Software provides financial technology products and services and is part of the broader Oracle group.

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Shares of Oracle Financial fell to the lows of the day of ₹10,332 on Friday, currently trading 3.2% lower at ₹10,572. The stock is down 11% for the week, and this is turning to be the worst week that the stock has had since January 2025, when it had declined over 12%.