Oracle has officially invoked force majeure clauses regarding Project Jupiter, a large-scale AI data center currently under development in New Mexico. The company is seeking to limit its financial liability should the facility fail to meet its scheduled opening in 2028.
Following the news, Oracle shares declined by 5% on Thursday. The project, which is designed to support 2.45 gigawatts of capacity, is part of the broader Stargate infrastructure initiative involving partners such as OpenAI and SoftBank.
Oracle submitted the notice to a division of Blue Owl Capital, the developer of the site. While Oracle maintains its status as the primary tenant, the legal move provides contractual protection against potential delays caused by external factors.
Blue Owl Capital stated that the notice does not alter the existing financial commitments for the multi-year project. Oracle also emphasized its commitment to the development, noting that it remains on the planned schedule.
The project has encountered regulatory challenges and local opposition regarding resource usage. Furthermore, reports indicate that approximately $18 billion in debt associated with the data center is currently trading at stressed levels.
