Oracle
Oracle invokes force majeure over New Mexico Stargate delays
Oracle sent Stack Infrastructure a force majeure notice on its New Mexico Stargate site over pipeline and permit delays; both companies say commitments stand.
Oracle has invoked a force majeure clause against Stack Infrastructure, the Blue Owl Capital unit building Project Jupiter, part of Oracle’s Stargate data center push in southern New Mexico, a move that lets Oracle delay payments if the site misses its 2028 completion target without giving up its place as the project’s main tenant.
TechCrunch reported Sept. 24, 2026, that Oracle sent the notice, a development first reported by Bloomberg, citing people familiar with the matter, and confirmed independently the same day by techstrong.it, part of the DataCenterDynamics network. Oracle is not seeking to exit the project, TechCrunch reported.
Oracle cited two delays behind the notice. A natural-gas pipeline that Energy Transfer LP is building to the site has slipped about six months, to Feb. 1, 2027, after the New Mexico State Land Office repeatedly denied permits, according to TechCrunch. A separate air-quality permit for a Bloom Energy fuel-cell system remains pending against a state deadline of Nov. 23, TechCrunch reported.
Project Jupiter is designed for 2.45 gigawatts of capacity and is targeted to come online in 2028, according to TechCrunch and techstrong.it. The campus is backed by an $18 billion syndicated bank loan, and techstrong.it reported the underlying project debt has been trading below 90 cents on the dollar. Oracle and Blue Owl shares each fell about 4% following the reports, techstrong.it said.
Both companies said their financial commitments are unchanged. “Project Jupiter remains on our planned schedule. We are fully committed to New Mexico and confident in our path forward,” Oracle said in a statement to CNBC, according to TechCrunch. Stack Infrastructure said in a statement carried by TechCrunch: “This notice does not change the financial commitments to this multi-year project.”
Analysis
Project Jupiter is one buildout inside Oracle’s $400 billion Stargate initiative, the infrastructure push tied to OpenAI’s compute needs, according to techstrong.it. A contractual hedge against a missed deadline, project debt trading below 90 cents on the dollar and a same-day 4% drop in both companies’ shares, as techstrong.it reported, point to investors pricing in execution risk in AI data center financing rather than simply absorbing a routine delay.