Oracle reportedly cites 'force majeure' to shield itself on data center
ORCL•Oracle reportedly sent a force majeure notice to the developer of its New Mexico data center project, seeking to delay payments if the campus fails to come online as planned in 2028. Oracle said Project Jupiter remains on schedule, while Blue Owl said the notice does not change the project's financial commitments.
1. Notice over project delays
Oracle reportedly sent a force majeure notice to a unit of Blue Owl over Project Jupiter, a New Mexico data center campus, seeking to delay payments if the project is derailed and does not come online in 2028 as planned. It is uncertain whether the notice would free Oracle from financial obligations; Oracle is seeking to delay payments rather than exit as the project's main tenant.
2. Companies respond
Oracle said Project Jupiter remains on its planned schedule and that it is reimagining the project's power plan as part of its commitment to New Mexico. Blue Owl said the notice does not change the financial commitments to the multi-year project.
3. Infrastructure challenges
The campus has faced delays to a planned natural-gas pipeline and legal challenges over water and air-quality permits. The 1,400-acre project, part of the Stargate initiative and Oracle's agreement to provide AI computing capacity to OpenAI, secured $18 billion in loans from a consortium of banks, according to media reports.
