Oracle’s Project Jupiter Notice: Power Delays, Payments and the 2028 Target

Oracle issued a force majeure notice to Stack Infrastructure, a Blue Owl unit developing New Mexico’s Project Jupiter, amid concerns about securing power for the campus. Reports describe the notice as an effort to preserve Oracle’s ability to defer payments if the data center misses its planned 2028 opening—not as a decision to exit the lease. Oracle says the project remains on schedule; a possible one-year delay has also been reported, but no revised opening date has been confirmed. 1210

Why Oracle sent the notice

Power is central to the dispute. Reuters reported that Oracle’s notice cited potential delays in securing power and that, according to a person familiar with the contract, securing power for the site is Oracle’s responsibility. 1 The project has also faced regulatory setbacks related to proposed energy infrastructure, as well as opposition. 9

A force majeure notice is not, by itself, proof that a project is delayed or that a party has successfully changed its contractual obligations. The lease and the precise legal effect of Oracle’s notice have not been made public, so it is not possible to determine from the notice alone whether Oracle can defer particular payments. Oracle has said the campus remains on its planned schedule. 110

What it could mean for the 2028 opening and lease

A person familiar with the deal told Reuters that Project Jupiter faces a possible one-year delay. That is a reported risk, not a confirmed new timeline; Oracle’s public position is that the project remains on schedule. 210

If the campus does open late, the notice could give Oracle a basis to seek payment deferrals under the contract. Reporting indicates Oracle is not trying to walk away as the main tenant, but the notice’s ultimate effect depends on contract terms that have not been disclosed. 1

Potential consequences for Blue Owl and lenders

A delayed opening could mean a longer wait for operations and lease-related income, potentially pushing out returns for the project’s backers. Blue Owl has said the notice does not change its financial commitments to the multiyear project. 1 That statement does not establish when the project will generate income or what returns investors will ultimately receive.

The financing is also under scrutiny. Before the notice, about $18 billion in loans tied to the New Mexico data center were reported as trading at 89 to 91 cents on the dollar. Those prices indicate that the loans were under pressure; they are not evidence of a default, nor do they show that the notice alone caused the pressure. 17

Implications for Oracle’s AI plans and near-term outlook

Project Jupiter is intended to provide computing capacity for OpenAI and is linked to the broader Stargate buildout. A delay would postpone capacity expected from this campus, but the reporting does not establish that Oracle’s wider OpenAI plans have been cancelled. 56

The notice puts a spotlight on the challenge of matching large data center commitments with the power and infrastructure needed to operate them. Oracle shares fell more than 3% on the day the notice was reported, according to CNBC. But the notice and a possible delay to a 2028 opening do not, on their own, establish a near-term revenue shortfall or quantify the effect on Oracle’s next few quarters. 10

For now, the key distinction is between a contractual warning and a confirmed project change: Oracle is seeking to preserve its position if power delays affect the schedule, while the company says Project Jupiter remains on track. The contract’s terms, the actual power timeline and the project’s eventual opening date remain unresolved in the available reporting. 1210