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Oracle Sends Force Majeure Notice on New Mexico Stargate Data Center

Oracle has sent a force majeure notice to the developer of Project Jupiter, its New Mexico Stargate data center campus, Bloomberg reports. The notice could let Oracle delay payments if the campus misses its 2028 target, though Oracle says it expects no delay.

AI News Feed · 2026-09-25 04:31

Force majeure clauses, common in energy and commodities contracts, excuse a party from contractual obligations when events outside its control interfere. Oracle's notice arrives as AI data center construction faces growing national scrutiny and as developers absorb steep costs to build capacity for customers such as OpenAI.

Oracle said it does not expect a delay. "Project Jupiter remains on our planned schedule," the company said in a statement to CNBC. "We are fully committed to New Mexico and confident in our path forward." Blue Owl Capital, whose unit received the notice, told CNBC that "this notice does not change the financial commitments to this multi-year project." Neither Oracle nor Blue Owl immediately responded to TechCrunch's requests for comment.

The notice follows other setbacks at the site, many tied to energy supply. The campus is designed to handle 2.45 gigawatts and is meant to run on gas-powered fuel cells from Bloom Energy, making a reliable gas supply central to its timeline. An Energy Transfer pipeline intended to deliver gas to the site has been delayed nearly six months, to Feb. 1, 2027, after regulators repeatedly denied permits for the line. In August, Bloomberg reported that the pipeline's route had been changed following those rejections. A separate air quality permit for the fuel cell system that would power the campus is also pending, and the state's environment department faces a Nov. 23 deadline to decide.

Project Jupiter is one of the flagship sites of Stargate, the AI infrastructure initiative Oracle, OpenAI and SoftBank announced with President Donald Trump early in his second term. The campus has drawn opposition from residents and environmental groups and has become a political flashpoint ahead of the midterm elections. Oracle has responded with a public outreach campaign in the state aimed at winning over the project's critics, according to Bloomberg.

Editor's Summary

Oracle has sent a force majeure notice for Project Jupiter, a New Mexico Stargate data center campus, allowing possible payment delays if the project misses its 2028 target. Oracle and Blue Owl Capital said their commitments and schedule remain in place, while the site faces pipeline and permit delays. The project remains a focal point in the debate over AI infrastructure, energy supply and local opposition.