Oracle Issues Force Majeure Notice on New Mexico AI Data Center Over Power Delays

Oracle (ORCL) has issued a force majeure notice to developers of Project Jupiter, a New Mexico AI data center, seeking to defer some payments if power supply and regulatory approvals delay the project. Oracle is the anchor tenant; Blue Owl Capital is a co-developer. The site is slated to serve OpenAI compute as part of the Stargate initiative. The planned 2.45GW microgrid is unlikely to secure generation, grid interconnection and permits before its 2028 target. Oracle shares fell on the news. Project Jupiter's roughly $18 billion syndicated loan has traded at about $0.89-$0.91 on the dollar, signaling investor concern over delays. Three days earlier, Texas paused approvals for new state-level data centers to reassess grid capacity, where interconnection queues exceed 470GW. The bottlenecks show planned AI capacity can expand quickly, but energization depends on power, permitting and financing timelines.