Oracle has issued a force majeure notice to a unit of Blue Owl Capital developing Project Jupiter, a 2.45GW data centre in New Mexico linked to the Stargate artificial intelligence programme, according to Bloomberg.
The notice could allow Oracle to defer payments if the campus fails to open as scheduled in 2028, although the company is not seeking to withdraw as the site’s main tenant.
Oracle said such notices are routine for projects of Project Jupiter’s scale and maintained that the campus remains on schedule. Blue Owl also said the notice does not change its financial commitments and that the two companies remain “fully aligned”.
The move is intended to provide Oracle with contractual protection if delays related to the project’s power supply increase costs. It remains unclear whether the notice could release Oracle from any existing commitments.
Under a potential arrangement reported by Bloomberg, Oracle could defer rent for three years after payments begin if the companies agree that a power-related force majeure event has occurred.
Oracle would, however, continue paying other interim costs and rent over the full term of the lease.
Power supply remains key challenge
Project Jupiter’s 2.45GW campus would require electricity equivalent to the consumption of roughly 1.8 million homes, highlighting the scale of the power requirements involved.
The project is part of Stargate, a venture involving Oracle, OpenAI and SoftBank that was unveiled with US President Donald Trump in January 2025. The programme was initially valued at $100 billion and has since grown beyond $400 billion.
The development has faced challenges securing the infrastructure needed to supply the campus with power.
New Mexico officials have twice rejected a permit for a natural gas pipeline, while approval for a Bloom Energy fuel-cell system remains pending.
The New Mexico Supreme Court has also twice paused a scheduled hearing, although Oracle continues to maintain that Project Jupiter is on track for its planned 2028 opening.
SemiAnalysis expects power to reach the campus in 2029, two years later than its earlier estimate, citing the unresolved air-quality permit and the lack of approval for the gas pipeline.
