Oracle issues force majeure notice for Stargate AI data center project

Oracle has issued a force majeure notice to the developer of Project Jupiter, a key component of its Stargate AI infrastructure initiative in New Mexico. The notice, typically used to excuse contractual obligations due to unforeseen events, is intended to allow Oracle to delay payments if the facility misses its 2028 operational deadline. Despite the notice, Oracle maintains that it remains fully committed to the project and expects it to stay on schedule. The project has faced significant logistical hurdles, particularly regarding its energy supply. The 2.45-gigawatt campus is designed to run on gas-powered fuel cells, but the necessary Energy Transfer pipeline has been delayed until early 2027 following regulatory permit denials. Additionally, an air-quality permit for the fuel cell system remains pending with a decision deadline set for late November. Blue Owl Capital, whose unit received the notice, stated that the financial commitments to the multi-year project remain unchanged. This development highlights the growing challenges and scrutiny facing the construction of massive AI data centers as tech giants race to build the capacity required for advanced generative AI models.