Oracle declares force majeure on the Stargate Project Jupiter data center in New Mexico
Oracle sent a force majeure notice to the developer of Project Jupiter (the Stargate data center in New Mexico) over pipeline and permitting delays. It allows Oracle to defer payments if the center does not come online by 2028.
According to a Bloomberg report picked up by TechCrunch, Oracle sent a force majeure notice to the developer of Project Jupiter, the Stargate data center in New Mexico. A force majeure clause typically releases a party from contractual obligations due to circumstances beyond its control. According to Bloomberg's sources, Oracle does not want to withdraw as the main tenant — the notice is meant to allow it to defer payments if the facility does not launch on schedule by 2028.
The delay is primarily related to the energy supply. The facility is meant to have a capacity of 2.45 gigawatts and is to run on gas fuel cells from Bloom Energy, making reliable gas delivery essential. The Energy Transfer pipeline that is meant to deliver gas to the site has been delayed by nearly six months to 1 February 2027 after regulators repeatedly denied permits for the route; in August, the pipeline route was modified as a result. A separate air quality permit for the fuel cell system is still pending a decision, with a 23 November deadline for the local environmental authority. Oracle stated that it does not expect any delay and that "Project Jupiter remains on its planned schedule"; Blue Owl Capital, whose unit received the notice, stated that the notice "does not change the financial obligations toward this multi-year project."
Project Jupiter is one of the flagship sites of the Stargate initiative, which Oracle, OpenAI and SoftBank announced together with President Trump early in his second term. The project faces opposition from residents and environmental groups and has become a political issue ahead of the autumn elections; Oracle has responded with a public awareness campaign in the state.
Why it matters
Delays in energy infrastructure at a key Stargate site show that planned AI data center capacity for customers like OpenAI is running into real-world constraints — regulatory approvals and pipeline construction, not just chip or capital availability. For companies factoring future compute capacity from OpenAI/Stargate into their plans, this is a signal that timelines may slip and that building in a buffer is advisable.
Relevant practical impact
What this means
For a business
Delays in energy and regulatory approvals for the Jupiter project increase the risk that the 2028 launch target for one of Stargate's flagship data centers will slip, which is relevant for companies planning long-term dependency on compute capacity from this project or from OpenAI.
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