Oracle Issues Force Majeure Notice on Project Jupiter Amid Power-Connection Delays

Oracle has sent Stack Infrastructure, a Blue Owl Capital subsidiary and the developer of Project Jupiter, a formal force majeure notice, according to S1. The reported purpose is not to withdraw from Oracle’s role as anchor tenant, but to establish a contractual basis to defer payments should the facility be unable to commence operations on the planned 2028 timetable.

S1 attributes the action to unforeseen permitting delays that are preventing the project from obtaining its electricity connection. The report says the first phase is at least seven months behind its original schedule and that a previously expected November operational milestone can no longer be met. Oracle, however, has stated that Project Jupiter remains on schedule.

Project Jupiter is planned for a site of about 1,400 acres in Doña Ana County, New Mexico. The development is planned to comprise four data centers with 2.45 GW of design IT capacity. That figure is a planned computing-capacity metric, not commissioned capacity.

Energy infrastructure timing is also a reported constraint. S1 says an Energy Transfer gas pipeline intended to supply the project has been delayed by at least six months following route-approval setbacks. The earliest stated in-service date is February 1, 2027. The report also cites local opposition related to water use, air quality and emissions from Bloom Energy gas generation.

The notice underscores the exposure of large AI data-center campuses to dependencies beyond the building programme: permits, physical grid or fuel infrastructure, and the allocation of related risks between tenant, developer and capital providers. If delays persist, they could affect the delivery schedule for computing resources intended for OpenAI and increase pressure on creditors, investors and energy-infrastructure suppliers. More broadly, the development suggests that announced multigigawatt AI capacity may not translate into available capacity on schedule without secured permits and energy delivery arrangements.

S1 reports that Oracle may be able to pay holding costs instead of rent for up to three years, although it remains unclear whether the force majeure notice will legally relieve the company of any of its previous financial obligations. A first contractual deadline is reported to fall in the first half of 2027.