Oracle sent a force majeure notice to Blue Owl Capital, the developer behind Project Jupiter, a data center in New Mexico built for the Stargate AI computing initiative, TechCrunch and BNN Bloomberg reported. Oracle cited potential delays in securing power for the 2.45-gigawatt site.
The notice lets Oracle delay higher lease payments if the facility misses its 2028 opening target, though it cannot cancel the lease and remains responsible for the project's debt costs, a source told BNN Bloomberg. Blue Owl has about $3 billion in equity in the project and would still eventually collect the higher rent, just later than planned, according to BNN Bloomberg.
The delays trace to a natural gas pipeline needed to power the site's Bloom Energy fuel cells, now pushed back nearly six months to Feb. 1, 2027, after New Mexico regulators rejected the original route, TechCrunch reported. A separate air-quality permit for the fuel cell system faces a Nov. 23 decision deadline from the state's environment department, according to TechCrunch.
Oracle said "Project Jupiter remains on our planned schedule," and Blue Owl said the notice "does not change the financial commitments to this multi-year project," TechCrunch reported. The site is part of Stargate, the $500 billion AI infrastructure buildout backed by OpenAI, SoftBank and Oracle, and the facility secured $18 billion in bank loans, according to BNN Bloomberg.
A force majeure notice on a site that is not built yet is a company hedging against permit and pipeline delays it does not control, not a sign the AI buildout is slowing. But it is a concrete data point on how tightly that buildout's timeline depends on power infrastructure nobody in AI actually controls.