Oracle sends force majeure notice on its New Mexico Stargate data center
techcrunch ·
Oracle has issued a force majeure notice to Blue Owl Capital regarding the development of Project Jupiter, a Stargate data center campus in New Mexico. This legal maneuver allows Oracle to potentially delay payments if the facility fails to meet its 2028 operational target due to uncontrollable events. Despite this precautionary measure, Oracle maintains that the project remains on schedule and expresses full commitment to the initiative. The notice arises amidst significant construction challenges, particularly concerning energy supply infrastructure. Delays have affected an Energy Transfer pipeline intended for gas delivery, which is now expected to arrive in February 2027 rather than earlier. Additionally, pending air quality permits for Bloom Energy’s fuel cell system contribute to the uncertainty surrounding the site's timeline. While the force majeure clause does not indicate an intent to exit as the main tenant, it highlights growing scrutiny over AI data center costs and regulatory hurdles.
techcrunch