Oracle has sent a “force majeure” notice to the developer of Project Jupiter, a data center campus in southern New Mexico built for the Stargate AI infrastructure initiative, Bloomberg reported first, citing people familiar with the matter. CNBC confirmed the notice. The developer is a unit of Blue Owl Capital.
What the notice does
A force majeure notice would let Oracle delay payment if the campus does not come online as expected in 2028, according to Bloomberg’s sources, cited by CNBC and TechCrunch. Bloomberg’s sources said Oracle is not seeking to exit as the campus’s main tenant. TechCrunch explained that force majeure clauses, common in energy and commodities contracts, excuse a party from contractual obligations when events outside its control get in the way. The text of the notice itself has not been published, and no SEC filing about it has been found.
What the companies said
Oracle: “Project Jupiter remains on our planned schedule. We are fully committed to New Mexico and confident in our path forward.”
Blue Owl Capital: “This notice does not change the financial commitments to this multi-year project.”
Bloom Energy, in a post on X, said it remains “committed” and is following the “planned timeline,” according to CNBC.
Oracle co-CEO Clay Magouyrk told analysts on the company’s Sept. 10 earnings call that Project Jupiter would not affect Oracle’s fiscal 2027 revenue or earnings guidance, according to CNBC.
Why power is the problem
Project Jupiter is designed to run on gas-powered fuel cells from Bloom Energy, at about 2.4 gigawatts. That power system depends on a 17-mile natural gas pipeline; a 0.6-mile stretch of the originally proposed route would have crossed New Mexico state trust land. The State Land Office denied Energy Transfer’s applications for that stretch in March and, in July, rejected a request to reconsider. TechCrunch, citing Bloomberg, reported the pipeline’s route was changed after those rejections.
In a letter dated July 14, 2026, New Mexico Land Commissioner Stephanie Garcia Richard rejected Energy Transfer’s request to reconsider her March 2026 denial of two rights-of-way and one business lease needed for that stretch of pipeline. In a July 15 release, the State Land Office said the letter cites several reasons why approving the applications would not be in the best interest of the state trust, including high greenhouse gas emissions related to Project Jupiter and the expected strain on the state’s water supply and natural resources. Garcia Richard said in the release: “In New Mexico, we truly mean it when we say ‘water is life.’ We can’t live without it and we know how precious and rare it is in our dry climate.”
The pipeline’s anticipated in-service date has slipped from August 2026 to February 2027, according to the company’s federal filings as reported by Source New Mexico. TechCrunch reported the pipeline was delayed nearly six months, to Feb. 1, 2027, after regulators repeatedly denied permits. A separate air-quality permit for the fuel-cell power system is still pending with the state environment department, which faces a Nov. 23 deadline to decide, according to TechCrunch.
The market
Shares of all three companies tied to the project fell Thursday. Oracle (ORCL) closed at $139.54, down 3.5% from Wednesday’s $144.56. Blue Owl Capital (OWL) closed at $9.25, down 3.6% from $9.60. Bloom Energy (BE) closed at $266.65, down 3.1% from $275.19. Separately, CNBC reported, citing the Financial Times, that $18 billion in debt tied to the data center is trading at stressed levels.
What happens next
Oracle said Project Jupiter “remains on our planned schedule”; the 2028 target for the campus to come online comes from Bloomberg’s report. The pipeline’s revised in-service date is February 2027, according to the company’s federal filings. The state environment department faces a Nov. 23 deadline to rule on the fuel-cell air-quality permit.