Oracle seeks force majeure protection for New Mexico AI data center
Oracle invoked force majeure protections tied to Project Jupiter, a planned AI data center in New Mexico, to limit financial exposure if the facility misses its 2028 opening target. Oracle shares fell 5% after the move, though the company said the project remains on schedule and that it is committed to New Mexico. The notice was sent to a unit of Blue Owl Capital, which said the project's financial commitments were unchanged.
Oracle’s notice concerns Project Jupiter, a New Mexico AI campus planned to open in 2028. The notice aims to cap Oracle’s exposure should outside forces delay the launch. It went to a Blue Owl Capital affiliate, the developer, while Oracle said the schedule is unchanged and Blue Owl said funding terms remain intact.
The project is expected to need roughly 2.45 gigawatts and forms part of the Stargate buildout linked to Oracle, OpenAI, SoftBank, and the Trump administration. It has met regulatory and local resistance, and Oracle’s co-CEO said it would not alter fiscal 2027 guidance.
If Project Jupiter slips, local residents, workers, utilities, lenders, and suppliers could face uncertainty over jobs, power demand, water use, and construction timelines. The dispute may shape how AI infrastructure risks are shared among tenants and developers, potentially influencing future data center deals. Communities weighing economic benefits against resource strain may see more scrutiny, while investors may reassess exposure to large AI projects.