Oracle has sent a force majeure notice to the developer of Project Jupiter, a major Stargate data center campus in New Mexico, according to Bloomberg 

The notice could allow Oracle to delay certain payments if the facility fails to meet its planned 2028 operational target, although the company is not seeking to withdraw as the project’s main tenant.

Oracle has said it does not currently expect a delay and remains committed to the project. 

Blue Owl Capital, whose unit received the notice, also said the development has not changed its financial commitments to the multi year project. 

The statements come as the construction of large AI data centers faces increasing scrutiny over costs, energy requirements and infrastructure challenges.

Project Jupiter is designed to support about 2.45 gigawatts of capacity and is expected to rely on gas powered fuel cells supplied by Bloom Energy. 

However, an Energy Transfer pipeline intended to supply natural gas to the site has been delayed by almost six months until February 2027 after regulators rejected permits for the proposed route.

The project also awaits an air quality permit for the fuel cell system, with the New Mexico environment department facing a November 23 deadline to make a decision. 

Project Jupiter is one of the major facilities associated with Stargate, the AI infrastructure initiative involving Oracle, OpenAI and SoftBank. 

The development has faced opposition from some residents and environmental groups, while Oracle has launched public outreach efforts in the state.

Source: TechCrunch