Oracle Notice Adds Contingency to New Mexico Stargate Campus

Oracle has sent a force majeure notice to the developer of Project Jupiter, a Stargate data center campus in New Mexico designed to handle 2.45 gigawatts of capacity. Bloomberg reported that the notice could allow Oracle to delay payments if the facility does not meet its target to come online in 2028.

Oracle is not seeking to leave the project as its principal tenant, Bloomberg’s sources said. The company told CNBC that Project Jupiter remains on its planned schedule and that it remains committed to New Mexico. Blue Owl Capital, whose unit received the notice, said the notice does not alter the financial commitments to the multi-year project.

A contractual safeguard amid infrastructure delays

Force majeure provisions are common in energy and commodities agreements. They can excuse a party from contractual duties when events beyond its control interfere with performance. In this case, the notice provides a contingency if the campus misses its 2028 completion target, rather than signalling an exit from the development.

The move follows setbacks connected to the project’s energy supply. Project Jupiter is intended to use gas-powered fuel cells from Bloom Energy, making dependable gas delivery an important part of its construction timeline.

Pipeline and permit decisions remain central

An Energy Transfer pipeline planned to supply gas to the site has been delayed by nearly six months, with its expected date moved to February 1, 2027. Regulators had repeatedly denied permits for the line, and Bloomberg reported in August that its route was changed after those rejections.

A separate air-quality permit for the fuel-cell system remains pending before New Mexico’s environment department. The department faces a November 23 deadline to decide on that permit. The project has also drawn opposition from residents and environmental groups and has become a political issue ahead of the midterm elections.

Part of the Stargate infrastructure plan

Project Jupiter is a flagship location in Stargate, the AI infrastructure initiative announced by Oracle, OpenAI and SoftBank with President Donald Trump early in his second term. Developers building capacity for AI customers face substantial construction costs, while large data center projects are receiving increased national scrutiny.

For businesses relying on future AI computing capacity, the development shows that site schedules depend not only on data center construction but also on energy infrastructure, regulatory approvals and the contractual provisions governing delays.