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Oracle Triggers Force Majeure on Data Center Project Over Power Delays
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CNBC TV18•25-09-2026, 07:44
Oracle Triggers Force Majeure on Data Center Project Over Power Delays
- •Oracle issued a "force majeure" notice to Blue Owl, developer of the New Mexico data center Project Jupiter, citing potential delays in securing power.
- •Securing power for the site is Oracle’s responsibility under the contract, and Oracle cannot terminate the lease.
- •Blue Owl has approximately $3 billion in equity in the project, with Oracle responsible for debt costs; the notice does not change financial commitments.
- •Oracle is attempting to delay payments if the data center, planned to come online in 2028, faces derailment.
- •Project Jupiter, a 1,400-acre campus, has faced infrastructure setbacks including pipeline delays and legal challenges over permits, and is part of Oracle's broader agreement with OpenAI to provide AI computing capacity.
Key Questions Answered
Oracle triggered a force majeure notice citing potential delays in securing power for the New Mexico data center project, known as Project Jupiter, which is planned to come online in 2028.
Under the contract, securing power for the site is Oracle's responsibility, and while the company cannot terminate the lease under any circumstances, it is responsible for paying the debt costs while Blue Owl has equity in the project.
Project Jupiter is part of Stargate, a $500 billion initiative involving OpenAI, SoftBank Group, and partners like Oracle to build AI infrastructure in the United States, as well as Oracle's broader agreement with OpenAI to provide AI computing capacity.
