Oracle Sends a Force Majeure Notice on Its 2.45 GW New Mexico Campus as the Gas Pipeline Slips to 2027

Oracle has sent a force majeure notice to the Blue Owl Capital unit developing Project Jupiter. The Stargate data center campus in Dona Ana County, New Mexico is designed to handle 2.45 GW. Bloomberg first reported the notice on September 24, 2026. Oracle is not trying to exit as the campus’s main tenant. The notice would let it delay payments if the site misses its 2028 target to come online. The problem is fuel. An Energy Transfer pipeline meant to deliver gas to the campus slipped nearly six months, to February 1, 2027. Regulators had repeatedly denied permits for the line.

Why It Matters

Project Jupiter was built to skip the interconnection queue. It runs on gas fuel cells from Bloom Energy instead of utility service, which is the fastest route to large load in 2026. That route trades one dependency for another. A campus that cannot reach a gas main is as stranded as one waiting on a transmission upgrade. The pipeline permit sits with regulators, not with the developer. Anyone pricing a behind-the-meter gas build should carry pipeline and air permit risk on the same line as interconnection risk.

Bloom Energy holds the fuel cell contract for the site. Oracle reaffirmed a contract for 2.4 gigawatts of fuel cell capacity after the notice became public. Bloom shares closed up 8% at $288.77 on September 25. Oracle shares fell about 4% when the notice was reported.

Oracle denies that the schedule has moved. “Project Jupiter remains on our planned schedule,” the company said in a statement to CNBC. “We are fully committed to New Mexico and confident in our path forward.” Blue Owl said the notice “does not change the financial commitments to this multi-year project.”

A second permit is still open. A state air quality decision on the fuel cell system carries a November 23 deadline at New Mexico’s environment department. Bloom Energy cannot run the campus until both the gas and that approval arrive.

Blue Owl earns a 9% yield on its equity during the development stage, a person familiar with the deal told Reuters. The levered yield is expected to reach about 11% on completion. Blue Owl’s equity in the project runs to roughly $3 billion.

Project Jupiter is one of the flagship sites of Stargate, the AI infrastructure initiative Oracle, OpenAI and SoftBank announced early in President Trump’s second term. The campus has drawn opposition from residents and environmental groups.

Sources

• TechCrunch
• Reuters
• 24/7 Wall St.