Oracle invokes force majeure clause for New Mexico Stargate data center over delays

Oracle has issued a force majeure notice related to its New Mexico Stargate data center, Project Jupiter, which would allow the company to delay payments if the facility misses its 2028 target to come online. The notice was first reported by Bloomberg and confirmed in statements to CNBC. Oracle emphasized that it does not expect a delay, stating, “Project Jupiter remains on our planned schedule.” Blue Owl Capital, which received the notice, similarly affirmed that “this notice does not change the financial commitments to this multi-year project.”

The force majeure notice follows a series of setbacks at the site, many of which are tied to its energy supply. The campus is designed to handle 2.45 gigawatts and relies on gas-powered fuel cells from Bloom Energy, making a reliable gas supply critical to its timeline. An Energy Transfer pipeline intended to deliver gas to the site has faced repeated permit rejections, pushing its delivery date to February 1, 2027, nearly six months later than originally planned.

A separate air-quality permit for the Bloom Energy fuel cell system is also pending, with the state’s environment department facing a November 23 deadline to decide. These regulatory and infrastructure hurdles underscore the growing scrutiny and challenges facing AI data center construction across the U.S.

Project Jupiter is one of the flagship sites of Stargate, the AI infrastructure initiative announced by Oracle, OpenAI, and SoftBank in collaboration with the Trump administration early in the president’s second term. The campus has drawn opposition from residents and environmental groups, becoming a political flashpoint ahead of midterm elections. Oracle has responded with a public outreach campaign in New Mexico aimed at addressing critics.