Oracle Sends Force Majeure Notice to AI Data Center Developer

    “Oracle” has sent a force majeure notice to the developer of the “Project Jupiter” data center campus under construction in New Mexico. Force majeure applies when events beyond the parties’ control prevent contractual terms from being fulfilled. As the primary tenant, “Oracle” does not want to withdraw from the project. However, if the campus does not begin operating in 2028, the notice could give the company the right to delay payments.    “Oracle” has said that it currently expects no delays and that the “Project Jupiter” project is progressing according to plan. The company also emphasized that it has not withdrawn from the New Mexico project. “Blue Owl Capital,” the owner of the unit that received the notice, said the document does not change its financial commitments under the multiyear project. In other words, construction is not being halted at this stage.    The main challenge in building the campus involves energy. The facility, which will have a capacity of 2.45 gigawatts, is expected to receive electricity from gas-powered fuel cells supplied by “Bloom Energy.” A reliable gas supply is therefore essential to completing the project on time. Delays in the energy infrastructure could put the plan to open the campus in 2028 at risk.    The opening of the “Energy Transfer” pipeline that is to supply gas to the facility has been delayed by approximately 6 months until February 1, 2027. After regulators denied approval for the line several times, the route was changed in August. An air quality permit has also not yet been obtained for the fuel-cell system that will supply electricity to the campus. The state’s environmental agency must announce its decision by November 23.    “Project Jupiter” is one of the main facilities under the “Stargate” initiative announced by U.S. President Donald Trump at the beginning of his 2nd presidential term. The initiative, which involves “Oracle,” “OpenAI” and “SoftBank,” aims to build data centers and other technical infrastructure for artificial intelligence systems. The campus has faced opposition from local residents and environmental groups, and it has also become a political controversy ahead of the midterm elections. “Oracle” is conducting a public information campaign in the state to reduce criticism.