Oracle has sent a force majeure notice to the developer of Project Jupiter, an AI data center in New Mexico tied to the Stargate project. The site is expected to be leased by Oracle once completed, with computing capacity then supplied to OpenAI. Oracle has not exited the project, but it is using contractual delay protections while a key bottleneck remains unresolved: power.
The campus is planned to run on as much as 2.45GW of Bloom Energy fuel cells, yet the related natural gas pipeline and air-quality permits have not been fully secured. Project Jupiter had been scheduled to begin operations in 2028. If those approvals continue to lag, the data center could miss its construction or power-delivery timeline.
Under the contract, if the delay is deemed a force majeure event, Oracle can push back the start of full rent payments by as much as three years. That does not eliminate its obligations. During the delay period, Oracle would still pay a lower development-stage rent and cover part of the debt interest and investment return. Investors have already reacted: roughly $18 billion of debt tied to Project Jupiter recently traded at 89 to 91 cents on the dollar, while shares of Oracle and Blue Owl both fell on the day the news emerged. Oracle still says the project remains on schedule.
Oracle has issued a force majeure notice to the developer of Project Jupiter, an AI data center project in New Mexico. The campus is part of the Stargate project and, once completed, is set to be leased by Oracle, which would then provide computing capacity to OpenAI.
Oracle has not pulled out of the project. Instead, it has activated a contractual delay-protection clause. The main problem at this stage is power. The site is planned to deploy up to 2.45GW of Bloom Energy fuel cells, but the associated natural gas pipeline and air-quality permits have not been fully cleared.
Project Jupiter had originally been scheduled to enter operation in 2028. If those approvals continue to face delays, the data center may not be able to start construction or secure power on time.
Under the contract, if the delay is classified as force majeure, Oracle can postpone the start of full rent payments by as much as three years. That does not mean it avoids payment altogether. During the delay period, the company would still pay a lower development-stage rent and take on part of the debt interest and investment return.
Markets have already shown concern. About $18 billion of debt tied to Project Jupiter recently fell to 89 to 91 cents on the dollar. On the day the news was disclosed, shares of Oracle and Blue Owl both moved lower. Oracle, for its part, still says the project is moving ahead on schedule.
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