Oracle has issued a force majeure notice to the developer of Project Jupiter, a large Stargate AI data center campus under construction in New Mexico, as the project works through delays and regulatory approvals tied to its energy supply. The notice does not mean Oracle is leaving the project and could allow the company to delay payments if the facility misses its planned 2028 opening.
Oracle told CNBC that Project Jupiter remains on schedule and that it is fully committed to New Mexico. Blue Owl Capital, whose unit received the notice, said the action does not change the financial commitments attached to the multi-year development.
Energy Infrastructure Faces Delays and Permitting Reviews
Project Jupiter is designed to support 2.45 gigawatts of computing capacity and is expected to rely on natural gas-powered fuel cells from Bloom Energy. The system makes access to a reliable natural gas supply important to the campus’s planned timeline.
A pipeline from Energy Transfer intended to supply the project has been delayed by nearly six months to February 1, 2027 after regulators rejected earlier permit applications. The pipeline route was subsequently changed.
The fuel cell system also requires an air-quality permit. The New Mexico Environment Department is reviewing an application for the Yucca Growth Infrastructure microgrid associated with Project Jupiter.
Oracle has previously acknowledged changes to the site’s energy plans. In June, the company announced an updated power plan that replaced an earlier gas turbine and diesel generator design with Bloom Energy fuel cells.
Oracle Says Project Jupiter Remains on Schedule
Force majeure clauses can protect parties when events outside their control interfere with contractual obligations. According to Bloomberg, Oracle’s notice is intended to provide protection if delays prevent the campus from becoming operational on schedule rather than to terminate its tenancy.
Oracle has described itself as the main tenant of the southern New Mexico campus. In a July Project Jupiter announcement, the company said construction had already generated nearly $80 million in state and local tax revenue and employed almost 700 New Mexico residents.
Project Jupiter is one of the data center campuses connected to Stargate, the AI infrastructure initiative involving Oracle, OpenAI and SoftBank. The New Mexico project has also faced opposition from some residents and environmental groups over its energy use, emissions and other local impacts.
Oracle has responded with community outreach efforts and has continued pursuing the approvals needed for the site’s energy infrastructure. The company also issued a request for proposals this month seeking 2 gigawatts of new renewable energy projects in New Mexico that could begin operating between 2027 and 2031.
Featured image credits: Wikimedia Commons
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