Oracle has informed the developer of Project Jupiter, a major data center project in New Mexico, that it is invoking a force majeure clause. This legal term, often found in contracts for energy and commodities, allows a party to avoid fulfilling obligations if unforeseen events beyond their control cause disruptions. Oracle is not seeking to abandon its role as the main tenant of the facility, but the notice could give the company the option to delay payments if the data center misses its 2028 completion deadline. The move comes amid increasing scrutiny of AI data center projects across the U.S., which are facing high construction costs and logistical challenges, especially for large clients like OpenAI.
Oracle insists that Project Jupiter remains on track to open by 2028, according to a statement to CNBC. The company emphasized its commitment to New Mexico and confidence in the project’s future. Blue Owl Capital, the developer of the site, also stated that the notice does not affect their financial obligations to the multi-year project. However, both Oracle and Blue Owl did not respond to further questions from TechCrunch.
The notice follows several delays and challenges at the Project Jupiter site, many of which are linked to its energy supply. The data center, designed to handle 2.45 gigawatts of power, relies on gas-powered fuel cells from Bloom Energy. A key part of the project’s timeline depends on a reliable gas supply, but an Energy Transfer pipeline intended to deliver gas to the site has faced repeated regulatory hurdles. Originally scheduled to be completed by 2026, the pipeline is now expected to be ready by February 1, 2027, after its route was changed due to permit rejections. A separate air quality permit for the fuel cell system is also still pending, with the state’s environment department having until November 23 to make a decision.
Project Jupiter is a flagship initiative of Stargate, a major AI infrastructure project launched by Oracle, OpenAI, and SoftBank with former President Donald Trump in the early days of his second term. The project has sparked controversy, drawing opposition from local residents and environmental groups. It has also become a political issue ahead of the upcoming midterm elections. In response, Oracle has launched a public outreach campaign in New Mexico aimed at addressing concerns and gaining support for the project.
Oracle Sends Force Majeure Notice to Stargate Data Center Developer in New Mexico
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