Oracle sends force majeure notice on its New Mexico Stargate data center
Oracle issued a force majeure notice for its New Mexico Stargate data center, allowing payment delays if the site misses its 2028 operational target. The notice follows gas pipeline and permit setbacks that could push the campus rollout, though Oracle says the schedule remains unchanged.
Oracle transmitted a force majeure notice to Blue Owl Capital regarding the Project Jupiter campus in New Mexico. This contractual mechanism allows a party to defer obligations when uncontrollable events intervene. The company stated this action permits payment delays if the facility fails to reach operation by 2028. Oracle told CNBC that the project remains on its planned schedule and expresses full commitment to the location. The notice highlights significant energy supply hurdles for a site designed to handle 2.45 gigawatts of power. A key gas pipeline from Energy Transfer faced permit rejections that pushed its expected arrival to February 1, 2027. Regulators also have a November 23 deadline to decide on a pending air-quality permit for the fuel cells. These delays trigger scrutiny for major AI infrastructure projects that depend on reliable gas supplies from vendors like Bloom Energy. It remains unclear if the operational timeline will actually slip despite the corporate assurances. While regulators have repeatedly denied permits for the gas line, the specific impact on the overall build schedule is not yet determined. Blue Owl Capital stated that financial commitments to this multi-year project have not changed. Neither entity responded to direct requests for comment regarding the potential consequences of these setbacks.