Oracle Issues "Force Majeure" Notice On New Mexico Data Center

Oracle shares fell at one point last week after the company issued a “force majeure” notice involving its Project Jupiter data center in New Mexico, a move that could provide contractual protection if the project fails to meet its planned timeline.

An Oracle data center as the company's Project Jupiter in New Mexico has faced permitting and infrastructure challenges as the company maintains that construction remains on schedule. [Photo: OpenAI]

The notice was sent to Blue Owl Capital, whose unit STACK Infrastructure is developing the project. According to reports, Oracle is seeking the ability to delay certain payments if the data center does not come online as planned in 2028.

Oracle said, however, that Project Jupiter remains on schedule and that the force majeure notice does not mean it is abandoning the project.

“We are fully committed to New Mexico and confident in our path forward,” Oracle Vice President Michael Egbert said, adding that such notices can be used to preserve contractual rights in large, multiyear developments.

The Project Jupiter campus is designed to provide about 2.45 gigawatts of power for artificial intelligence infrastructure.

Its development has encountered challenges involving electricity, gas supply and permitting.

An Energy Transfer pipeline intended to supply the facility has been delayed, while a separate air-quality permit for its fuel-cell system remains pending. Oracle shares fell 3.47% on Thursday, according to Searchlight New Mexico.