Archive · 25 Sep 2026
Oracle Seeks Payment Delay for Massive New Mexico AI Center
Oracle is helping build a very large AI data center in New Mexico.
The center is called Project Jupiter and is supposed to open in 2028.
Oracle sent a legal notice saying it may need more time before paying rent if important construction work is delayed.
This does not mean Oracle is leaving the project.
If both sides agree that a power-related problem caused a delay, Oracle could postpone rent payments for up to three years.
The project needs a natural-gas pipeline, but that pipeline has been delayed.
Some local and political groups oppose the growth of large AI data centers.
Oracle and Blue Owl say they are still committed to the project.
Investors nevertheless worried, and shares of both companies fell.
Oracle issued a force majeure notice to Blue Owl Capital over the Project Jupiter data center in New Mexico.
The notice could defer Oracle’s rent payments by up to three years if power-related delays prevent the facility from opening as planned in 2028.
Project Jupiter is designed for 2.45 gigawatts of power and is part of the Stargate AI infrastructure initiative.
A natural-gas pipeline supplying the project was delayed nearly six months to February 2027 after permit denials by the New Mexico State Land Office.
Oracle and Blue Owl said the notice does not change their commitments, while investors reacted with concern over the project’s risks.
- Who
- Oracle, Blue Owl Capital, Energy Transfer, and other parties involved in Project Jupiter.
- What
- Oracle issued a force majeure notice seeking potential rent-payment relief if power-related construction delays affect the project.
- When
- The facility is planned to come online in 2028; the gas pipeline is now expected in February 2027.
- Where
- New Mexico, United States.
- Why
- Oracle is seeking protection from accumulating costs if construction and power-supply delays prevent the data center from opening on schedule.
Project Concerns
Project Supporters
Meaning of the force majeure notice
Project Concerns
The notice and the delayed gas pipeline suggest that power and construction problems could threaten the project’s planned 2028 opening and create financial risks.
Project Supporters
Oracle said such notices are common in large developments and do not themselves establish that a delay has occurred or change delivery expectations.
Commitments to Project Jupiter
Project Concerns
Investor concern, falling share prices, and local and political opposition indicate doubts about the project’s execution and the expansion of AI data centers.
Project Supporters
Oracle said it is not seeking to exit, while Blue Owl said the notice does not change financial commitments and that both sides remain fully aligned.
Financial exposure
Project Concerns
Oracle is seeking to defer rent if qualifying delays occur, and debt tied to the development traded below 90 cents on the dollar, reflecting market concern.
Project Supporters
Oracle would continue covering other interim costs and remain obligated for the full lease term; the notice does not trigger a default on the construction financing.
- Project
- Project Jupiter data center campus
- Planned capacity
- 2.45 gigawatts
- Planned opening
- 2028
- Potential payment delay
- Up to three years on rent, if an agreed force majeure event occurs
- Pipeline delay
- Nearly six months, with completion expected in February 2027
- Construction financing
- An $18 billion loan provided by about 20 banks
- Market reaction
- Oracle shares fell 4.4% in early trading and Blue Owl shares fell 3.7%