Oracle Issues Force Majeure Notice for New Mexico Data Center Project

Oracle has sent a force majeure notice to the developer of the Project Jupiter Stargate data center campus being built in New Mexico. While the move allows for payments to be delayed against potential disruptions to the facility's 2028 target, the parties emphasized that the project is progressing as planned.

Force Majeure Notice and Details

Oracle has delivered a force majeure notice to the developer of the Stargate data center project in New Mexico. This move does not mean the company intends to withdraw from the project as the primary tenant, but rather lays the groundwork for postponing payments in the event of potential delays in the facility's 2028 opening target.

Corporate Statements Regarding the Project

Oracle stated that the project is proceeding according to the planned schedule, that they are fully committed to New Mexico, and that they are confident in the path forward. Blue Owl Capital, the entity associated with the unit that received the notice, stated that this notification does not alter the financial commitments for the multi-year project.

Energy Supply and Delays Experienced

The 2.45-gigawatt campus is planned to be powered by gas-fueled fuel cells produced by Bloom Energy. However, the Energy Transfer pipeline expected to supply gas to the facility has been delayed by about six months to February 1, 2027, due to regulators denying permits and route changes. Additionally, the air quality permit process required for the fuel cell system is ongoing.

Strategic Importance and Environmental Backlash of the Project

Project Jupiter stands out as one of the flagship facilities of the Stargate artificial intelligence infrastructure initiative announced by Oracle, OpenAI, and SoftBank. Facing opposition from local residents and environmental groups, the project has become a subject of political debate, while Oracle is running a public relations campaign to win over critics.