Oracle Flags Force Majeure at New Mexico Stargate Data Center
Oracle's force majeure notice could delay payments if New Mexico's 2.45 GW Project Jupiter misses 2028 amid gas pipeline delays and permit uncertainty.
Summary
As of September 24, 2026, Oracle had sent Project Jupiter’s developer, a Blue Owl Capital unit, a force majeure notice covering events outside its control. Oracle remains the New Mexico campus’s main tenant, but could delay payments if the facility misses its 2028 opening. Oracle says the schedule remains intact and it is fully committed to New Mexico; Blue Owl says the notice does not alter financial commitments to the multi-year project.
The 2.45-gigawatt campus depends on Bloom Energy gas-powered fuel cells. Energy Transfer’s gas pipeline is nearly six months late, until February 1, 2027, after repeated permit denials prompted an August 2026 route change. A separate fuel-cell air-quality permit remains pending, with the state environment department due to decide by November 23. Project Jupiter is a flagship of Stargate, announced by Oracle, OpenAI and SoftBank with President Donald Trump early in his second term. It faces resident and environmental opposition, national scrutiny of costly AI infrastructure, and political pressure before the midterm elections, prompting an Oracle outreach campaign.
Positives
- Oracle remains Project Jupiter’s main tenant and says it expects the campus to meet its 2028 opening target.
- Blue Owl Capital says the force majeure notice does not change financial commitments to the multi-year project.
- Oracle says it remains fully committed to New Mexico and is conducting public outreach to address local criticism.
Risks & concerns
- Energy Transfer’s gas pipeline is nearly six months late, with delivery postponed until February 1, 2027, after repeated permit denials.
- Project Jupiter’s fuel-cell air-quality permit remains unresolved ahead of the state environment department’s November 23 deadline.
- Oracle could delay payments if events outside its control prevent the 2.45-gigawatt campus from opening in 2028.
- Residents and environmental groups oppose the campus, making it a political flashpoint before the midterm elections.
- Developers face steep costs and growing national scrutiny while building AI capacity for customers including OpenAI.