Oracle is considering the possibility of a delay in the Jupiter data center project in New Mexico and is exploring options for financial relief under a legal concept known as "force majeure," which refers to events beyond a company's control, such as natural disasters or political upheaval. This situation highlights the growing tensions over the infrastructure needed to support artificial intelligence, both at the local level and in financial markets. The Jupiter data center is a key component of the U.S. government's "Stargate" initiative, a major investment plan announced when Donald Trump returned to power. Oracle is now seeking to protect itself from potential delays in completing the project, which has faced significant local opposition and has become a symbol of public concern about the expansion of AI and data center industries.
Oracle has informed Stack Infrastructure, the project’s developer, that it may invoke a force majeure clause to justify any delays. Stack Infrastructure is a subsidiary of Blue Owl Capital, an investment fund. If the data center is not completed and connected to the network by 2028, Oracle is seeking a three-year extension on its lease of the site. According to Bloomberg, a company spokesperson said citing force majeure is common for large projects, especially in the energy sector, to guard against disruptions caused by climate or geopolitical factors.
The Stargate initiative, which inspired a similar investment plan by the French government during the AI Summit, includes Jupiter as a central element. The data center is expected to eventually reach a capacity of 2.45 gigawatts, nearly matching the combined output of two reactors at the Flamanville nuclear power plant in France. This level of power could supply electricity to about 1.8 million homes. Despite this scale, the project has faced challenges, including difficulties in securing financing. A group of 20 banks provided $18 billion in loans, but the project's future remains uncertain due to growing concerns about Oracle’s financial stability.
The Jupiter project has encountered multiple obstacles, including New Mexico’s refusal to grant the necessary permits for its energy supply. These decisions aim to reduce reliance on polluting gas turbines. A planned connection to a gas pipeline from Energy Transfer LP, expected to be operational in September 2026, has been delayed until February 2027. The project has also become a focal point of public opposition, with many residents worried about its impact on water resources and air quality. Surveys suggest that 65% of New Mexico residents oppose the project. As a result, Oracle is working to win over local opponents and has become a topic of discussion in the upcoming mid-term elections. For example, Democratic candidate Deb Haaland has pledged to pause all data center development in the state and require developers to invest in renewable energy if she is elected.
Oracle Seeks Payment Relief for Delayed Jupiter Data Center Amid Local Opposition and Financial Concerns
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