Oracle sends force majeure notice on its New Mexico Stargate data center
The notice would allow Oracle to delay payments should the facility miss its 2028 target to come online.
Oracle has informed the developer of Project Jupiter, a Stargate data center campus in New Mexico, of a force majeure notice, according to Bloomberg's Thursday reporting. This type of clause, typical in energy and commodities contracts, permits a party to avoid contractual responsibilities when unforeseen events outside their control arise.
Oracle does not intend to terminate its role as the campus's primary tenant, as per Bloomberg's sources. The notice would permit Oracle to postpone payments if the facility fails to meet its 2028 target for commencement. The notice also coincides with increasing national scrutiny on AI data center construction, and as developers bear significant expenses to establish capacity for customers such as OpenAI.
Oracle insists that it anticipates no delay, stating that "Project Jupiter remains on our planned schedule" and reaffirming its commitment to New Mexico. Blue Owl Capital, whose unit received the notice, affirmed to CNBC that "this notice does not alter the financial commitments to this multi-year project." Despite the notice, Oracle and Blue Owl have not yet responded to requests for comment from TechCrunch.
The notice follows a series of setbacks at the site, primarily concerning its energy supply. The campus, designed to operate at 2.45 gigawatts, relies on gas-powered fuel cells from Bloom Energy, with its reliable gas supply central to the timeline. A pipeline intended to provide gas to the site has faced a six-month delay, set to commence on Feb.
1, 2027, following repeated permit rejections from regulators. In August, Bloomberg reported that the pipeline's route had been altered post-rejections. A separate air quality permit for the fuel cell system powering the campus is also pending, with the state's environment department set to make a decision on November 23. Project Jupiter, a flagship site of Stargate, the AI infrastructure venture Oracle, OpenAI, and SoftBank launched with President Donald Trump early in his second term, has faced opposition from residents and environmental groups, becoming a political flashpoint ahead of the midterm elections.
Oracle has countered with a public outreach campaign in the state aimed at winning over the project's critics.
Written by urgent.news from TechCrunch's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
