Oracle's share price fell by as much as 4.6% due to a nearly six-month delay in a key natural gas pipeline project for its "Stargate" AI data center.
Oracle's $165 billion "Project Jupiter" AI data center, a critical component of its Stargate contract with OpenAI, has encountered new obstacles. Transwestern Pipeline, a subsidiary of pipeline operator Energy Transfer LP, disclosed that the "Green Chili Project" natural gas pipeline, originally scheduled to commence operations on August 15, 2026, is now expected to be delayed until February 1, 2027. This pipeline is core infrastructure for fueling "Project Jupiter." Following the announcement of the delay, Oracle's stock price initially fell by 4.6%, ultimately closing down 3.7%. The pipeline delay is primarily due to the New Mexico State Land Office's refusal to approve the pipeline route, raising external concerns about the project's ability to be completed on schedule. Josh Garcia, an analyst at energy consulting firm Energy Aspects, believes the new operational date "may not be realistic," suggesting the project might not commence operations until the second half of 2027 at the earliest, and even faces the risk of cancellation.
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