Oracle sends force majeure notice on its New Mexico Stargate data center

Oracle has delivered a force majeure notice to the developer of Project Jupiter, the Stargate data center campus in New Mexico, according to Bloomberg. The notice is intended to provide Oracle the contractual ability to postpone payments if the campus does not meet its target to be operational in 2028, but sources told Bloomberg the company is not trying to withdraw as the campus’s primary tenant. Both Oracle and Blue Owl Capital — whose unit received the notice — issued statements that downplayed any change in commitment. Oracle told CNBC it still expects the project to meet its planned schedule and affirmed its commitment to New Mexico. Blue Owl said the notice does not alter the financial commitments to the multi-year development. Project Jupiter has encountered a series of setbacks largely linked to energy supply and permitting. The campus is planned to support 2.45 gigawatts and was designed to run on gas-powered fuel cells from Bloom Energy, making a steady gas delivery critical to its timeline. An Energy Transfer pipeline meant to bring gas to the site has been pushed back nearly six months to February 1, 2027, after regulators repeatedly denied permits and the pipeline route was reportedly revised; an air-quality permit for the fuel cell system is also pending with a state decision due November 23. The campus is one of the flagship sites under Stargate, the AI infrastructure initiative announced by Oracle, OpenAI, and SoftBank alongside President Donald Trump early in his second term. The project has generated opposition from local residents and environmental groups and become politically contentious ahead of the midterm elections; Oracle has been conducting a public outreach campaign in New Mexico to address critics, Bloomberg reported.