Bloom Energy Stock Slides on Oracle AI Data Center Setback

Bloom Energy (NYSE: BE) shares declined nearly 5.0% in morning trading after a Bloomberg report stated that Oracle (NYSE: ORCL) invoked a force majeure clause related to a major artificial intelligence data center project that was slated to use Bloom's technology.

Project Jupiter Faces Uncertainty

According to the report, Oracle sent a force majeure notice to Blue Owl Capital’s Stack Infrastructure unit for "Project Jupiter," a planned $165 billion AI data center campus in New Mexico. The notice signals Oracle's intent to potentially suspend payments if the facility is not operational by its target launch date in 2028.

The project was specifically designed to be powered by Bloom Energy’s natural gas-powered fuel cells. The contractual issue now places Bloom's significant role in the massive infrastructure project in jeopardy.

Critical Pipeline Delay at the Core

The root of the problem is a severe delay in a natural gas pipeline developed by Energy Transfer LP (NYSE: ET). The pipeline, which is essential for operating Bloom's fuel cells at the site, has been pushed back by nearly six months to February 2027 following repeated permit denials from the New Mexico State Land Office, the report said.

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Without a functioning pipeline, the campus is left without its primary power source. The setback has caused broader concern, with shares of Oracle and Blue Owl Capital also falling on the news.

Market Context and Other Headwinds

The sell-off in Bloom's stock was compounded by a broader risk-off sentiment in the market, as the S&P 500, Dow, and Nasdaq all retreated amid pressure from elevated Treasury yields.

Investors are also monitoring an ongoing federal securities class-action lawsuit against Bloom Energy, which alleges the company misled investors. The approaching September 28, 2026, lead-plaintiff deadline is keeping this legal risk in focus for the company.