Archive · 25 Sep 2026
Oracle Force-Majeure Notice Raises Questions Over New Mexico AI Project
Oracle is helping build a very large computer centre for artificial intelligence in New Mexico.
The centre is called Project Jupiter and is supposed to start operating in 2028.
Oracle sent the developer a legal notice called force majeure.
This kind of notice can protect a company when unexpected problems make a project late or difficult.
Oracle may be trying to delay some rent payments if the centre cannot get enough power on time.
The project has faced permit problems, local opposition and a delayed gas pipeline.
Banks have lent about $18 billion to help build it, so delays could worry lenders and investors.
Oracle says the notice does not mean the project is cancelled or officially delayed.
Blue Owl also says it and Oracle remain committed to the project, but the reported notice has increased questions about the cost and risks of building AI infrastructure.
Oracle reportedly issued a force-majeure notice concerning Project Jupiter, a major New Mexico AI data centre campus.
The notice could allow Oracle to delay some rent payments if power-related delays prevent the facility from opening as planned in 2028.
Project Jupiter has faced permit denials, local opposition, financing concerns and a delayed natural-gas pipeline.
About 20 banks provided an $18 billion loan, while Blue Owl has roughly $3 billion of equity invested in the project.
Oracle and Blue Owl said the notice does not change their commitments, although investors and lenders remain concerned about rising AI infrastructure risks.
- Who
- Oracle, Blue Owl Capital and its portfolio company STACK Infrastructure are involved; OpenAI and SoftBank Group are connected to the wider Stargate development.
- What
- Oracle reportedly invoked force majeure in connection with Project Jupiter, potentially seeking flexibility over payment obligations if the project is delayed.
- When
- The reports were published on September 24, 2026; the facility is planned to launch in 2028, while a related gas pipeline is expected to begin service on February 1, 2027.
- Where
- Project Jupiter is being developed in Doña Ana County, New Mexico.
- Why
- Oracle is seeking to preserve its contractual position and limit financial exposure if power, construction or regulatory problems delay the facility.
Investor and project-risk concerns
Oracle and Blue Owl assurances
Meaning of the notice
Investor and project-risk concerns
Investors and lenders may interpret the notice as evidence that power, construction or regulatory problems could delay the project and increase costs.
Oracle and Blue Owl assurances
Oracle said force-majeure notices are common in developments of this scale, preserve contractual rights and do not by themselves establish a delay or change delivery expectations.
Financial obligations
Investor and project-risk concerns
A possible rent delay could raise questions about who bears the cost of delays and whether the project's financing structure can withstand them.
Oracle and Blue Owl assurances
The reported arrangement would not eliminate Oracle's obligations; the company could still owe interim costs and rent for the full lease term, while Blue Owl said the notice does not change financial commitments.
Project timeline
Investor and project-risk concerns
One person familiar with the notice and deal said the program was being delayed by a year, while permit disputes, opposition and the delayed pipeline add uncertainty around the 2028 target.
Oracle and Blue Owl assurances
Oracle said it remains fully committed to New Mexico and confident in its path forward, and Blue Owl said the parties remain fully aligned on Project Jupiter.
- Project
- Project Jupiter, an AI data centre campus being developed by STACK Infrastructure, a Blue Owl portfolio company.
- Planned capacity
- The campus is designed for 2.45 gigawatts of power.
- Planned launch
- The facility is expected to come online in 2028.
- Reported payment relief
- If a qualifying force-majeure event is agreed, Oracle could reportedly delay rent for three years after payments begin while remaining responsible for the full lease-term rent.
- Financing
- About 20 banks provided an $18 billion construction loan, and Blue Owl has about $3 billion of equity invested.
- Power setback
- An Energy Transfer natural-gas pipeline intended to supply the project was delayed until February 1, 2027 after repeated permit denials.
- Market reaction
- Oracle shares fell about 3.5% to 4.4% during Thursday trading, while Blue Owl shares fell about 3.6% to 3.7%.
