Project Jupiter, a 1,400-acre data center in New Mexico, is facing significant construction and regulatory hurdles. The facility, designed for 2.45 gigawatts of power, is a key component of the Stargate AI initiative intended to support OpenAI workloads.
Oracle issued a force majeure notice on September 24, 2026, citing power-related delays. Specifically, the permitting for a natural gas pipeline has been pushed to February 2027, threatening the original 2028 operational target.
Blue Owl Capital has committed $3 billion in equity, while a bank consortium led by Goldman Sachs arranged up to $20 billion in construction debt. Currently, this debt is trading at 89 to 91 cents on the dollar.
To address environmental concerns regarding air quality, Oracle plans to replace planned natural gas turbines with Bloom Energy fuel cells. The project also faces local opposition regarding water usage and zoning issues at a separate site in Michigan.
