AI Summary
Oracle has notified the developer of its New Mexico Stargate data center about a force majeure situation, allowing potential delays in payments if the facility does not meet its 2028 operational target. Despite this, Oracle asserts that it does not anticipate any delays and remains committed to the project.
%22%2F%3E%3Crect%20width%3D%22800%22%20height%3D%22450%22%20fill%3D%22url(%23glow)%22%2F%3E%3Ctext%20x%3D%22400%22%20y%3D%22275%22%20text-anchor%3D%22middle%22%20fill%3D%22%2360a5fa%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%22132%22%20font-weight%3D%22800%22%20letter-spacing%3D%22-6%22%20opacity%3D%220.9%22%3Ecn%3C%2Ftext%3E%3Ctext%20x%3D%22400%22%20y%3D%22318%22%20text-anchor%3D%22middle%22%20fill%3D%22%2360a5fa%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2211%22%20font-weight%3D%22600%22%20letter-spacing%3D%223%22%20opacity%3D%220.38%22%3ECONTEXT%20NEWS%3C%2Ftext%3E%3C%2Fsvg%3E)
- Oracle sent a force majeure notice to Blue Owl Capital regarding Project Jupiter, a data center in New Mexico.
- The notice allows Oracle to delay payments if the facility misses its target to become operational by 2028, but Oracle does not plan to exit as the main tenant.
- The notice comes amid scrutiny of AI data center construction and rising costs for developers.
- Oracle stated that Project Jupiter remains on schedule and expressed confidence in its progress.
- Blue Owl Capital confirmed that the notice does not alter financial commitments to the project.
- The data center has faced setbacks related to energy supply, including delays in a pipeline intended to deliver gas to the site.
- A separate air quality permit for the fuel cell system powering the campus is pending, with a decision deadline set for November 23.
- Project Jupiter is part of the Stargate initiative, which includes Oracle, OpenAI, and SoftBank, and has faced opposition from local residents and environmental groups.
oracledata centerforce majeurenew mexicopayments