The disclosure came weeks after Oracle told the public that Project Jupiter was on schedule and simultaneously issued a force majeure notice to the developer, according to prior reports. Oracle shares fell about 5.5% on the news, while Bloom Energy, which holds a 2.4-gigawatt fuel cell contract for the campus, declined 8%, according to market data cited in the report [4].
Oracle previously sent the force majeure notice to Blue Owl's Stack Infrastructure unit, citing potential power delays. Oracle and Bloom Energy subsequently conducted a reassurance tour, stating the project remained on track, according to company statements [4].
Pipeline Delays and Force Majeure Notice
The underlying issue is a natural gas pipeline that Energy Transfer was forced to reroute after New Mexico regulators rejected the proposed path, pushing the in-service date from this summer to next year, according to Data Center Dynamics. The rejection followed an initial application denial in March and a second denial in July.
Oracle has also issued a request for proposals for 2 gigawatts of new renewable energy in New Mexico, indicating the company is assembling additional backup plans, according to the report.
The contrast between the public schedule and the private notice drew attention from market observers. Companies typically issue force majeure notices when contractual obligations cannot be met due to circumstances beyond their control, and the move signaled that power delivery timelines were at risk [4].
Oracle and Bloom Energy held a reassurance tour after the notice, saying the project remained on track, according to company statements. As of the report, Oracle has maintained that Jupiter remains on schedule [1].
Virtual Pipeline Operations in Utah and Texas
Trucked gas has kept an Oracle data center outside Salt Lake City operating for more than a year while the company waited for a pipeline connection, with Superior Plus's Certarus division handling the hauling, Bloomberg reported [4].
Oracle publicly thanked VoltaGrid on X for "cost-effective power solutions" shortly after Bloomberg asked questions about the practice. The process involves pulling gas off a pipeline, compressing it into trailers, driving it to the site, and decompressing it to feed generators.
Analyst Jack Weixel told Bloomberg that delivered compressed natural gas costs roughly four times the price of gas at a major pipeline hub when labor, specialized equipment, and diesel for the trucks are included [1]. The approach has historically been reserved for remote mines and oil rigs far from grid infrastructure, according to the report.
The report also stated that part of Oracle's marquee AI data center campus in Abilene, Texas, is powered by natural gas that never traveled down a gas line to get there, arriving on trailers as compressed gas moved by "virtual pipeline" trucking and burned in mobile generators because the substation and fixed pipeline meant to serve the site are still being completed [2].
Scale Limits and Cost Estimates
The scalability of trucked gas faces significant constraints, according to energy analyst estimates. SemiAnalysis energy analyst Ellie Holbrook told Bloomberg that if Oracle ran 100 megawatts of Project Jupiter on trucked gas, each large trailer would supply only about 40 minutes of electricity [4]. At that rate, 100 megawatts would require approximately 36 trailers per day, or one delivery every 40 minutes around the clock.
Scaling to the full 2.45 gigawatts would require roughly 880 trailers per day, or one arriving about every 90 seconds, according to the analysis. The estimate indicates that trucked gas can serve as a bridge for initial operations but faces practical limits at full campus scale.
The broader context for the trucking strategy is the financial pressure on Oracle. The report noted that Oracle's free cash flow is negative and expected to remain so until more AI data centers are completed, while the company has committed billions to delivering capacity for OpenAI on time.
Trucked gas at roughly four times hub prices represents a high operating cost that may affect margins, according to the report.
Oracle Maintains Schedule as Risks Remain
Oracle has publicly maintained that Project Jupiter is proceeding as planned even as the force majeure notice and trucking operations suggest potential delays.
Analysts and reports indicated that trucked gas can serve as a bridge but may result in delays, higher costs, or both. The binding constraint on the AI buildout is power, and on-site gas generation depends on the gas actually arriving, according to the report.
When gas arrives by truck at four times the price, the economics of behind-the-meter generation become more challenging.
Bloom Energy, Blue Owl, and other participants in the Jupiter financing chain may be affected by the outcome, according to the report. The report stated that the most likely outcome hinted at by the force majeure notice is delays, higher costs, or both, with the financing chain exposed to those risks. Oracle's shares have fallen significantly from their yearly high, reflecting investor concerns about the company's AI infrastructure commitments [3].
References
- From Force Majeure To Forced Haulage: Oracle Is Now Trucking Natural .... https://www.zerohedge.com/technology/force-majeure-forced-haulage-oracle-now-trucking-natural-gas-its-ai-data-centers
- Oracle Is Hauling Gas by Truck to Keep Its AI Bet Alive. https://www.ainvest.com/news/oracle-hauling-gas-truck-ai-bet-alive-2610/
- Oracle Is Trucking In Natural Gas to Keep Its AI Data .... https://247wallst.com/investing/2026/10/12/oracle-is-trucking-in-natural-gas-to-keep-its-ai-data-centers-on-schedule/
- Oracle Moves Gas by Trucks to Avoid Data Center Power Delays. https://www.bloomberg.com/news/articles/2026-10-08/oracle-moves-gas-by-trucks-to-avoid-data-center-power-delays
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