Oracle sent a force majeure notice to the Blue Owl Capital unit developing its New Mexico data centre project on 24 September, seeking to delay payments if the 2.5GW campus misses its planned 2028 opening, CNBC reported.
Key points
- Oracle wants to defer payments if Project Jupiter does not open in 2028 as planned.
- Blue Owl says the notice does not alter financial commitments to the multi-year project.
- New Mexico officials rejected a natural gas pipeline extension intended to serve the campus in July.
- Oracle shares fell more than 3% on 24 September, while Blue Owl shares also declined.
Blue Owl says commitments remain unchanged
The notice concerns Oracle’s payment obligations if Project Jupiter is late, rather than its tenancy at the campus, Data Center Dynamics reported. A force majeure provision can relieve a party of contractual obligations when circumstances outside its control intervene. Oracle is seeking protection against higher costs associated with a delay.
Blue Owl Capital told CNBC: “This notice does not change the financial commitments to this multi-year project.” Oracle separately told the broadcaster that Project Jupiter remained on its planned schedule. Those statements leave the planned 2028 opening in place alongside Oracle’s request for protection if it slips.
Oracle shares fell more than 3% on 24 September after news of the notice, while Blue Owl shares also declined, CNBC reported. Shares of Bloom Energy, which is slated to supply fuel-cell power to the facility, fell 3%. Bloom said in a post on X that it remained committed to its contract and planned timetable.
The notice concerns when Oracle would have to make payments if the opening is delayed. Blue Owl’s statement says the project’s financial commitments are unchanged.
Project Jupiter faces a July pipeline rejection
Oracle was announced as Project Jupiter’s tenant in January 2026. The 1,400-acre New Mexico site is expected to have four data centre buildings, according to Data Center Dynamics. Stack Infrastructure and BorderPlex Digital Assets are building the campus, and the companies previously announced plans to invest up to $165 billion in the project. Blue Owl acquired Stack in 2024.
New Mexico state officials rejected an extension of the natural gas pipeline intended to serve the campus in July. An initial application had been denied in March. Oracle had asked federal regulators to accelerate their review so the pipeline could enter service by 15 August, warning that missing that window would bring much higher costs, Data Center Dynamics reported.
The campus is part of the broader Stargate AI infrastructure build-out. The project had also encountered local opposition and concerns from environmental groups. Its planned capacity makes the timetable consequential for the companies building and supplying it, while the notice sets out the payment relief Oracle is seeking if that timetable slips.
Oracle separates Jupiter from fiscal 2027 guidance
Oracle co-chief executive Clay Magouyrk told analysts on 10 September that Project Jupiter would not affect the company’s previously stated fiscal 2027 revenue or earnings guidance. The campus is planned to open in 2028, after the fiscal year covered by that guidance.
Oracle said in a statement reported by Data Center Dynamics that Project Jupiter remained on its planned schedule. The company also said it expected the project to bring more than $4.7 billion in economic benefit to New Mexico. That figure is Oracle’s expectation for the project, rather than a payment term in the force majeure notice.
Oracle issued a request for proposals in September to develop 2GW of new renewable energy capacity in New Mexico to support power delivery at Project Jupiter. The company also announced a funding package of up to $1 million for research into possible carbon capture and sequestration at the campus and elsewhere in the state.
