Oracle issues force majeure notice for its New Mexico Stargate data center facility

Oracle has issued a force majeure notice tied to Project Jupiter, the Stargate data center campus it anchors in New Mexico, Bloomberg first reported Thursday. The move does not signal an exit from the project, but it creates a legal cushion: if the facility misses its 2028 target to come online, Oracle could delay payments it would otherwise owe.

What the Notice Actually Does

Force majeure clauses, common in energy and commodities contracts, excuse a party from its obligations when events beyond its control interfere. According to Bloomberg's sources, Oracle is not trying to walk away as the campus's main tenant. The notice would simply give the company payment flexibility if construction slips past 2028 — a guardrail rather than a withdrawal.

Both companies involved have publicly downplayed the filing. "Project Jupiter remains on our planned schedule," Oracle said in a statement to CNBC, adding it is "fully committed to New Mexico and confident in our path forward." Blue Owl Capital, whose unit received the notice, told CNBC that "this notice does not change the financial commitments to this multi-year project." Neither company responded to TechCrunch's requests for comment.

Energy Supply Is the Bottleneck

The notice follows a series of setbacks at the site, most of them tied to power. Project Jupiter is designed to handle 2.45 gigawatts and is meant to run on gas-powered fuel cells from Bloom Energy, making a dependable gas supply central to the entire timeline.

That supply is now uncertain. An Energy Transfer pipeline intended to deliver gas to the campus has been delayed nearly six months, to Feb. 1, 2027, after regulators repeatedly denied permits for the line. In August, Bloomberg reported the pipeline's route had been rerouted following those rejections. A separate air quality permit for the fuel cell system is also pending, with the state's environment department facing a Nov. 23 deadline to decide.

A Political Flashpoint for Stargate

Project Jupiter is one of the flagship sites of Stargate, the AI infrastructure initiative Oracle, OpenAI and SoftBank announced with President Donald Trump early in his second term. The campus has drawn opposition from residents and environmental groups and has turned into a political flashpoint ahead of the midterm elections. Bloomberg reports Oracle has launched a public outreach campaign in New Mexico aimed at winning over critics.

Where Things Stand

The project remains officially on schedule, but the force majeure notice makes clear Oracle is hedging against regulatory and supply-chain risk. The dates to watch are Nov. 23, when the air quality decision is due, and Feb. 1, 2027, the revised pipeline deadline — both of which will determine whether the 2028 online target holds.