Oracle has sent a ‘force majeure’ notice to Blue Owl Capital in an effort to shield itself from potential increased costs associated with a data center project in New Mexico, per a report from Bloomberg.
Should the 2.5GW data center campus, dubbed Project Jupiter, fail to come online in 2028 as planned, the cloud giant is seeking to delay the payments it would have to make, rather than forfeit its tenancy, the report added.
A force majeure is a contractual provision that frees parties from liability or obligation when circumstances arise that are beyond their control.
Oracle was announced as the tenant of Project Jupiter in January 2026. The 1,400-acre campus is expected to span four data center buildings and is being built by Stack and BorderPlex Digital Assets, with the companies previously announcing plans to invest up to $165 billion in the project.
Stack Infrastructure was acquired by alternative asset manager Blue Owl in 2024.
Oracle has faced several roadblocks in the campus's development, the biggest being the rejection of a natural gas pipeline extension to feed the campus by state officials in July.
Despite the setback, Oracle recently claimed that the project remains on schedule. The company had requested federal regulators to fast-track the review to allow the pipeline to enter service by August 15, warning that missing the window would lead to much higher costs being incurred. An initial application had been denied in March.
Earlier this month, Oracle issued a Request for Proposals (RFP) to develop 2GW of new renewable energy capacity in New Mexico, which would support power delivery at the Project Jupiter campus. The company also announced an up to $1 million funding package to support research into the potential deployment of carbon capture and sequestration at the campus and across the state.
Without directly acknowledging the Bloomberg report, in a post on X, Oracle’s official account shared a statement that read: “Project Jupiter remains on our planned schedule. We are fully committed to New Mexico and confident in our path forward.”
It went on to note that the cloud company has made “ significant economic, community, and philanthropic investments in the state,” and described Stack as a “tremendous partner”
“We are excited about the more than $4.7 billion in economic benefit Project Jupiter is expected to bring to New Mexico,” the statement concluded.
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