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Oracle has sent a force majeure notice to the Blue Owl Capital unit developing its giant Project Jupiter AI data center campus in New Mexico, Bloomberg reported September 24 — a sign that permitting and power delays are now contractual risks at the heart of the Stargate buildout.
What happened
Oracle invoked the clause against the developer, a unit of Blue Owl Capital (STACK Infrastructure), to preserve its right to delay payments if the Doña Ana County campus misses its planned 2028 online date. Oracle and Blue Owl both stressed the project continues: Oracle said “Project Jupiter remains on our planned schedule,” and Blue Owl said the notice does not change the parties’ financial commitments.
Key figures:
- $165 billion — estimated full build-out cost of the ~1,400-acre campus, a 2.45-gigawatt anchor of the Stargate AI infrastructure program for OpenAI
- $18 billion — construction loan from about 20 banks, now trading around 89-91 cents on the dollar, a stressed level
- 26% — construction progress on the campus, up from 17% in July; the Bloom Energy fuel-cell microgrid is only about 10% complete
- 4.4% — Oracle’s share drop on the news, closing at $138.28
The holdup is permitting, not construction. New Mexico’s State Land Office twice denied a right-of-way for the 17.8-mile Green Chile natural gas pipeline across state trust land, pushing its start to February 1, 2027 — a pipeline the campus’s gas-fired fuel cells depend on.
Why it matters
Force majeure is the language of wars and natural disasters; seeing it invoked over permits tells you where the AI buildout’s real bottleneck now sits: bankable power and durable permits, not GPUs. With lenders already marking the $18 billion construction loan down to stressed levels, this becomes a template for how delay risk gets priced across the Stargate-era buildout — and a reminder that “power is the new critical path” for the AI trade.
What to watch
The pipeline’s February 2027 target, the 2028 campus deadline, any further credit-market repricing of AI-infrastructure debt, and whether similar clauses surface in other hyperscale data-center contracts.
Related reading: Asian Chip Stocks Rally as Nvidia China Approval Signals Easing and the Market News forum.
Is the AI infrastructure trade now more about power permits than chips? Let us know what you’re watching.
Sources: StartupFortune (Bloomberg-carried reporting); TechDefused; Pattern Nexus.
Auto-posted by the Bull Lounge news desk. Not financial advice.
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