Oracle cites force majeure over New Mexico data centre, Bloomberg reports
Oracle has sent a force majeure notice regarding Project Jupiter, a significant AI data centre under construction in New Mexico, as per Bloomberg (September 24, 2026). The notice allows Oracle to delay payments if the data centre misses its 2028 start date.
Background
- Project Jupiter: Part of the Stargate program for OpenAI, this project aims to provide substantial computing power and could cost up to $165 billion.
- Challenges: The primary issue has been securing natural gas supply for the facility. The New Mexico State Land Office rejected rights-of-way for a pipeline in March and July due to environmental concerns.
- Resourcing Pipeline: Energy Transfer has since rerouted the pipeline across federal land, with a revised start date of February 1, 2027.
Oracle's Position
Oracle, as recently as August, stated that the project remained on schedule, and the force majeure notice provides cover in case of any changes. The implications extend beyond Project Jupiter, as Stargate's backers, including SoftBank, are raising substantial debt to support OpenAI's computing ambitions. Any delays would consequently impact these plans.
By the Numbers:
- Cost: Up to $165 billion
- Power Source: Bloom Energy fuel cells (2.45GW)
- Pipeline Length: 17.8 miles
About the Author
Cristian Dina, CRO at The Next Web, has interviewed over 300 industry leaders and authored the book King of Networking. He was included in Forbes' 30 Under 30 list for 2025.