Oracle invokes force majeure for New Mexico AI data center project

Oracle has issued a force majeure notice to Blue Owl Capital’s unit, STACK Infrastructure, regarding Project Jupiter, a massive 2.45GW AI data center campus under development in New Mexico. The notice is intended to provide contractual protection and potentially allow Oracle to defer rent payments if the project fails to meet its 2028 opening target due to power supply issues.

The project, which is part of the broader Stargate initiative involving OpenAI and SoftBank, faces significant infrastructure hurdles. Delays have been linked to the inability to secure necessary permits for a natural gas pipeline and air quality approvals for fuel-cell systems. While Oracle maintains that the project remains on schedule and that such notices are routine for developments of this scale, the move has raised concerns among investors regarding the execution risks of massive AI infrastructure expansions.

Blue Owl Capital stated that the notice does not change its financial commitments and that all parties remain fully aligned. The project is expected to have a significant economic impact, potentially creating thousands of jobs, but it remains caught in a complex web of federal and state regulatory requirements concerning energy and environmental standards.