Oracle cites ‘force majeure’ to shield itself on data center, Bloomberg News reports

On September 24, Oracle issued a force majeure notice to Blue Owl, the developer of the large New Mexico data center known as Project Jupiter. The notice was due to potential delays in securing power for the project, according to a source familiar with the matter. Oracle is responsible for securing power under the contract and cannot terminate the lease.

However, by invoking force majeure, Oracle is attempting to delay payments until the data center comes online in 2028. Blue Owl, which has $3 billion in equity in the project, will still receive the higher rent but with a delayed start. Project Jupiter is part of Oracle's broader agreement with OpenAI to provide AI computing capacity and is a component of the Stargate initiative, a $500 billion investment in AI infrastructure in the US.