Oracle sends force majeure notice on New Mexico data center

Oracle has sent a force majeure notice to the developer of Project Jupiter, a Stargate data center campus in New Mexico, Bloomberg reported Thursday. Force majeure clauses typically excuse parties from contractual obligations when unforeseen events prevent fulfillment.

The notice is not an attempt by Oracle to exit its role as the main tenant for the campus. Instead, it would permit the company to delay payments should the facility fail to come online by its 2028 target. This development occurs amidst growing national scrutiny of AI data center construction and significant costs undertaken by developers to build capacity for clients like OpenAI.

Oracle, however, stated that it does not anticipate a delay. "Project Jupiter remains on our planned schedule," the company said in a statement to CNBC. "We are fully committed to New Mexico and confident in our path forward."

Blue Owl Capital, whose unit received the notice, commented to CNBC that "this notice does not change the financial commitments to this multi-year project." The reported notice follows a series of setbacks at the site, many linked to its power supply.