Oracle delays payments at new mexico data center amid construction setbacks

Oracle has issued a force majeure notice to Blue Owl Capital, the developer of Project Jupiter, a Stargate data center campus in New Mexico, citing potential delays in the facility’s 2028 completion date. The notice allows Oracle to delay payments if the campus fails to meet its timeline, though the company insists it remains on schedule. The project, designed to handle 2.45 gigawatts of power, relies on gas-powered fuel cells from Bloom Energy and an Energy Transfer pipeline expected to be operational by February 2027. Regulatory delays have pushed back the pipeline’s approval, with a final decision on an air-quality permit pending until November 23. Oracle and Blue Owl reaffirmed their financial commitments to the multi-year project, despite ongoing opposition from residents and environmental groups. The campus, a flagship site of Stargate, has become a political issue ahead of the midterms, prompting Oracle to launch a public outreach campaign. The force majeure notice follows a series of setbacks, including repeated permit denials for the Energy Transfer pipeline and changes to its route. Bloomberg reported that the pipeline’s route was altered after regulatory rejections. Oracle maintains its commitment to the project, stating it is fully dedicated to New Mexico. Meanwhile, the broader AI data center sector faces scrutiny and rising costs as developers expand capacity for clients like OpenAI.