Oracle Stock Falls 3.4% on Power Delay Fears as Japan Unit Jumps 7%

• Oracle stock fell 3.4% on September 24 amid concerns about potential power delays at its Project Jupiter data center
• Oracle said the project remained on schedule, while Bloom Energy stock also came under pressure because its fuel cells will power the campus
• Oracle Japan shares jumped more than 7% after quarterly sales grew 13% and cloud revenue increased 31.7%

Oracle stock fell 3.4% on September 24 as concerns about powering a major New Mexico data center unsettled investors. Hours later, Oracle Japan shares climbed more than 7% following record quarterly results. Both businesses are expanding their cloud operations, but the immediate questions facing them look different. Japan has rising sales to show investors. In the US, attention has turned to whether a key construction project can deliver the capacity Oracle has promised on time.

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Project Jupiter Power Concerns Weigh on Oracle Stock

Oracle issued a force majeure notice to a Blue Owl Capital unit developing the New Mexico campus, citing potential delays in securing power. A person familiar with the matter said Oracle is responsible for securing the site’s power under the contract.

According to recent reporting, the notice could allow Oracle to defer payments if Project Jupiter misses its planned 2028 opening. It does not signal that Oracle intends to leave as the main tenant.

Oracle disputed expectations of a delay. “Project Jupiter remains on our planned schedule,” the company said. Blue Owl also said the notice did not change the project’s financial commitments.

The concern spread to Bloom Energy stock, which fell 3.1% in premarket trading. Its fuel cells are intended to power the campus, making the construction timetable relevant to both companies. This early decline is separate from Oracle’s closing move.

For investors, the unresolved issue is when the facility can begin serving customers. Even with demand for computing capacity, a site needs dependable power before it can generate the revenue expected from it.

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Oracle Japan Gains 7% as Cloud Revenue Climbs

Oracle Japan’s June–August results offered more immediate evidence of growth. The separately listed subsidiary reported sales of ¥74.86 billion, up 13% from a year earlier. Operating profit increased 22.7% to ¥25.92 billion, while net profit rose 23.2% to ¥18.25 billion, according to reports.

Oracle Cloud revenue in Japan grew 31.7% to ¥25.14 billion, representing roughly a third of sales. The company nevertheless retained its full-year sales growth forecast of 6%–10%.

The expansion has been years in preparation. Oracle announced plans in April 2024 to invest more than $8 billion in Japan’s cloud and AI infrastructure over a decade. Japan’s results show what additional cloud demand can contribute to earnings. For the US parent, investors still need reassurance about the work required to bring new capacity online.

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