Oracle has issued a force majeure notice to the developer of Project Jupiter, a major Stargate data center campus under construction in New Mexico, according to a report by Bloomberg published Thursday. While force majeure clauses typically excuse contractual obligations due to uncontrollable events, sources indicate Oracle is not attempting to withdraw as the primary tenant. Instead, the notice serves as a protective measure that would permit the tech giant to postpone financial payments should the facility fail to meet its targeted 2028 launch date.
Oracle publicly denied expectations of a delay, stating in a statement to CNBC that “Project Jupiter remains on our planned schedule.” The company emphasized its full commitment to the New Mexico project and confidence in its progress. Blue Owl Capital, the entity within the Blue Owl group that received the notice, responded similarly, asserting that the notification does not alter its multi-year financial commitments to the project.
The legal maneuver comes amid heightened scrutiny of AI data center construction nationwide, as developers grapple with rising costs to accommodate clients like OpenAI. Project Jupiter is a flagship component of Stargate, an infrastructure initiative announced earlier in President Donald Trump’s second term involving Oracle, OpenAI, and SoftBank. The campus is designed to handle 2.45 gigawatts of power and relies heavily on gas-powered fuel cells from Bloom Energy.
However, the site has faced numerous setbacks, primarily concerning its energy supply chain. An Energy Transfer pipeline intended to deliver natural gas to the campus has been delayed by approximately six months, with a new expected completion date of February 1, 2027. This delay follows repeated permit denials from regulators, which eventually led to a rerouting of the pipeline, as first reported by Bloomberg in August. Additionally, a separate air quality permit for the fuel cell system remains pending, with the state’s environment department facing a November 23 deadline to render a decision.
Beyond technical and regulatory hurdles, the project has become a political flashpoint ahead of midterm elections, drawing opposition from local residents and environmental groups. In response, Oracle has launched a public outreach campaign in the state aimed at addressing concerns and winning over critics, as noted by Bloomberg.
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