Oracle Seeks Payment Flexibility for Project Jupiter

Oracle has sent a force majeure notice to the developer of Project Jupiter, its planned New Mexico data center, seeking the right to delay payments if the campus does not open as scheduled in 2028, according to reporting based on people familiar with the matter. The notice’s exact terms and legal effect have not been made clear, and Oracle says the project remains on schedule. The development, led by a unit of Blue Owl Capital, is planned as a major computing site for artificial intelligence workloads. Reports describe a potential cost of up to $165 billion and a planned capacity of as much as 2.45 gigawatts. Oracle is the project’s primary tenant. The notice reportedly seeks payment flexibility if the opening target is missed, rather than indicating that Oracle intends to leave the project. A central challenge is securing natural gas for the fuel cells planned to supply power to the campus. The New Mexico State Land Office rejected right-of-way applications for a proposed pipeline in March and again in July. Energy Transfer, which is responsible for the pipeline, has since rerouted it across federal land and shifted its planned start date to February 1, 2027.