Oracle sends force majeure notice for New Mexico Stargate data center

In short: Oracle sent a force majeure notice for its Project Jupiter data center in New Mexico, a step that could let it delay payments if the project is late.

What happened

Oracle sent a force majeure notice to the developer behind Project Jupiter, a planned data center campus in New Mexico that is part of the Stargate initiative, Bloomberg first reported. A data center is a large building full of computers that run online services, similar to a power plant but for computing.

A force majeure clause is a contract rule that can excuse delays when something outside your control happens (like a storm shutting down a construction site). In this case, the notice would allow Oracle to delay payments if the facility misses its target date to open in 2028. Bloomberg reported that Oracle is not trying to leave the project as the main tenant.

Oracle said it does not expect a delay. In a statement to CNBC, the company said, “Project Jupiter remains on our planned schedule.” Blue Owl Capital, whose unit received the notice, told CNBC the notice does not change the project’s financial commitments.

The notice comes after setbacks tied to energy. The campus is designed for up to 2.45 gigawatts of power and is meant to rely on gas-powered fuel cells from Bloom Energy, which makes a steady gas supply important. TechCrunch reported that an Energy Transfer pipeline meant to deliver gas to the site has been delayed to Feb. 1, 2027 after permit denials, and an air quality permit for the fuel cell system is still pending.

Why it matters

Big AI projects need huge amounts of reliable electricity, and delays in power and permits can slow everything down. For people outside tech, this affects how quickly companies can add the computer capacity that powers AI tools and other online services, and how much those services may cost over time.

Source: TechCrunch AI