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Oracle invokes force majeure for New Mexico AI data center
Oracle has issued a force majeure notice regarding Project Jupiter, a 2.45-gigawatt AI data center campus under construction in Doña Ana County, New Mexico. The project is a key component of the Stargate initiative, which involves OpenAI and SoftBank. The notice was sent to the project developer, STACK Infrastructure, a subsidiary of Blue Owl Capital.
The invocation of the force majeure clause is reportedly intended to protect Oracle by allowing it to delay rent payments for up to three years if the site is not operational by its 2028 target. The primary cause cited is the delay in securing a natural gas pipeline necessary to power the site's fuel-cell microgrid, following permit rejections from the New Mexico State Land Office.
While Oracle maintains that the project remains on schedule and that its financial commitments have not changed, the news has caused market volatility. Oracle's stock fell between 3% and 6% following the announcement, and concerns have rippled through the broader AI infrastructure sector. Investors are also monitoring the project's financing, as approximately $18 billion in loans tied to the campus have reportedly entered stressed territory.
Entities
Blue Owl Capital · Blue Owl Capital · New Mexico · OpenAI · OpenAI · Oracle · Oracle · Project Jupiter · Project Jupiter · Stack Infrastructure · Stack Infrastructure
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 10 SOURCES] Blue Owl Capital stated the notice does not change financial commitments to the project. www.fool.com · www.foreignpolicyjournal.com · www.spacemoney.com.br · cryptobriefing.com · elpasomatters.org · +5 more
- [● 7 SOURCES] The project is part of the Stargate initiative involving OpenAI and SoftBank. brunobertez.com · www.foreignpolicyjournal.com · www.sourcetrail.com · www.cryptopolitan.com · techcrunch.com · +2 more
- [● 16 SOURCES] The force majeure notice aims to delay rent payments if the site is not delivered by 2028. www.fool.com · brunobertez.com · www.foreignpolicyjournal.com · www.spacemoney.com.br · www.blogspan.net · +11 more
- [● 22 SOURCES] Oracle issued a force majeure notice regarding Project Jupiter in New Mexico. newmexiconewsport.com · www.fool.com · brunobertez.com · www.foreignpolicyjournal.com · innovation-village.com · +17 more
- [● 9 SOURCES] Oracle's stock fell approximately 3% to 4% following the force majeure notice. brunobertez.com · www.foreignpolicyjournal.com · finanzmarktwelt.de · siliconangle.com · www.cryptopolitan.com · +4 more
- [● 6 SOURCES] Approximately $18 billion in loans have been tied to the project. www.fool.com · www.sourcetrail.com · cryptobriefing.com · www.cryptopolitan.com · brunobertez.com · +1 more
- [● 15 SOURCES] The notice was triggered by delays in securing a natural gas pipeline for the site. www.fool.com · www.blogspan.net · cryptobriefing.com · techcrunch.com · brunobertez.com · +10 more
- [● 9 SOURCES] Project Jupiter is a 2.45-gigawatt AI data center campus in Doña Ana County, New Mexico. brunobertez.com · www.foreignpolicyjournal.com · www.sourcetrail.com · cryptobriefing.com · www.cryptopolitan.com · +4 more