Oracle Corporation (NYSE:ORCL) has issued a force majeure notice on Project Jupiter, its New Mexico AI data center campus. The project includes Bloom Energy Corporation’s (NYSE:BE) largest single fuel-cell deployment, covering up to 2.45 gigawatts within a project expected to involve up to $165 billion of investment over its life. The announcement sent Bloom Energy shares down more than 5%. The stock has not only recovered well, but also continues to attract investors. Citadel Securities’ Ken Griffin has been quietly loading up on the stock in the last 4 quarters.
Bloom Energy has already surged on the AI power boom, but can that boom really justify an $85 billion valuation?
The notice is a financial protection against regulatory delays, not an indication that Oracle is leaving the project as a tenant. The issue also points more to local regulatory friction than to any issue with the fuel cells themselves. Bloom Energy was quick to take to social media to confirm that it not only spoke to the company but was assured of continued full commitment from Oracle.
The notice is intended to defer payments if the data center is not operational by 2028, rather than suggest Oracle is stepping away from the project as its main tenant. Oracle told Bloomberg it remains fully committed to New Mexico but did not directly address the notice.
Project Jupiter remains on our planned schedule. We are fully committed to New Mexico and confident in our path forward.
Project Jupiter has already faced permitting hurdles, including the New Mexico State Land Office’s rejection of pipeline permits on two separate occasions, in March and again in July. That led Oracle to replace gas turbines with Bloom fuel cells earlier this year to help address permitting opposition.
What It Means for Bloom Energy Stock?
Project Jupiter represents Bloom Energy’s single largest deployment, making its exposure both significant and concentrated within the company’s roughly 25 gigawatt total pipeline visibility. Debt linked to the project has been trading below 90 cents on the dollar, pointing to lender concerns that the project could face delays. Bloom Energy’s response is that its equipment is fungible and can be deployed elsewhere if Jupiter is delayed. The problem also stems from regulation rather than the technology itself. Oracle switched to Bloom Energy to address an earlier permitting issue, and the latest notice represents another point of friction in the same environment. For Bloom Energy, the bigger issue is when backlog turns into revenue. A delay could push revenue recognition out without necessarily reducing the overall opportunity.
Oracle Has More Riding on the 2028 Deadline
The delay matters more for Oracle. Its earnings are expected to grow only about 7% this fiscal year. Growth then jumps to between 35% and 43% a year, as its AI data center buildout is expected to pay off. That makes it more dependent on projects like Jupiter opening on time, while it carries about $89 billion more debt than cash. The stock already trades about 35% below its usual earnings multiple, a sign investors are pricing in that risk. Bloom Energy is less tied to this one project, but its valuation leaves less room for delays overall. At nearly 20x forward sales, more than three times its 5-year average, the stock is priced for fast growth. To me, Oracle carries the bigger project risk, while Bloom can’t afford many revenue delays.
Oracle’s hedge fund ownership slightly increased from 115 funds holding the stock at the end of Q1 2026 to 119 funds at the end of Q2 2026. Short interest stood at just 2.73% of float as of August 31, 2026.
Hedge fund ownership of Bloom Energy rose from 91 funds at the end of Q1 2026 to 116 funds at the end of Q2 2026, pointing to stronger institutional interest. At the same time, short interest reached 7.34% of float as of August 31, 2026, showing that concerns remain around the company’s short-term execution.
What matters from here is whether New Mexico resolves its permitting hurdles in time to keep the 2028 target intact, or whether Bloom Energy’s largest anchor deployment slips further. If there was one takeaway from this, it’s that Bloom Energy is still the favored partner to deliver this project, and if it doesn’t happen, it can just take its product elsewhere. So the delay may have a limited impact on Bloom if the equipment can be redirected elsewhere, which is why the stock recovered so quickly.
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