“Project Jupiter remains on our planned schedule,” Oracle said in a statement. “We are fully committed to New Mexico and confident in our path forward.”
Blue Owl said the notice does not alter the economics already agreed to for the project.
“This notice does not change the financial commitments to this multi-year project,” the firm said.
Project Jupiter is one of the major sites being developed under the broader Stargate AI infrastructure initiative. The New Mexico campus is expected to support more than 2.4 gigawatts of capacity and is planned to use Bloom Energy fuel cells for power.
The project has faced several complications around energy supply and permitting. A natural gas pipeline intended to serve the site has been delayed after regulators rejected earlier permit applications, and its route was subsequently changed. A separate air-quality permit connected to the fuel cell system also remains under review.
Those issues matter because the campus depends on a steady gas supply for its planned power system. The pipeline is now expected to be completed on February 1, 2027, nearly six months later than previously planned.
Oracle has maintained that the project does not threaten its near-term financial outlook. Co-CEO Clay Magouyrk told analysts on the company’s September 10 earnings call that Project Jupiter would not affect Oracle’s previously issued fiscal 2027 revenue or earnings guidance.
The financing behind the campus has also drawn attention. Oracle has about $18 billion in debt associated with the project, according to reporting cited in the original article, with some of that debt trading at stressed levels.
Bloom Energy, which is expected to provide the site’s fuel-cell technology, said it remains committed to the agreement and the current timeline.
The project has also become a source of local opposition, particularly around environmental concerns and the broader expansion of large-scale data centers. Oracle has responded with outreach efforts aimed at addressing criticism and building support for the New Mexico campus.
Despite the force majeure notice, both Oracle and Blue Owl are presenting the project as moving forward under its existing plan. The notice mainly gives Oracle contractual protection if outside delays interfere with the 2028 target.
This analysis is based on reporting from CNBC.
Image courtesy of Barchart.
This article was generated with AI assistance and reviewed for accuracy and quality.
