Oracle cites force majeure on its New Mexico AI data center

Oracle has sent a force majeure notice to the developer of Project Jupiter, a massive artificial intelligence data center under construction in southern New Mexico. The site is being developed by Stack Infrastructure, a unit of Blue Owl Capital. People familiar with the matter reported that Oracle is seeking to postpone payments if the facility is delayed and misses its planned 2028 launch.

An Oracle spokesperson stated that Project Jupiter remains on its planned schedule, adding that the company is fully committed to New Mexico. Blue Owl declined to comment. The campus is designed for 2.45 gigawatts of capacity, enough to power roughly 1.8 million homes, and forms part of the Stargate AI infrastructure initiative alongside OpenAI and SoftBank Group.

The facility faces significant regulatory obstacles. A critical natural gas pipeline by Energy Transfer was delayed by almost six months to February 1, 2027, following permit rejections by the New Mexico State Land Office. The site is designed to run on gas-powered fuel cells from Bloom Energy.

The development is backed by an $18 billion loan from about 20 banks, while OpenAI signed a $400 billion deal with Oracle and SoftBank last year for five US data centers. Debt tied to the New Mexico project is currently trading at stressed levels below 90 cents on the dollar.