Back to News

Oracle sends force majeure notice on New Mexico data center, faces power and permitting hurdles

#oracle#data-center#ai-infrastructure#force-majeure

Oracle has sent a force majeure notice to the developer of its Project Jupiter data center in New Mexico, potentially allowing it to delay payments if the facility misses its 2028 target to come online. The project also faces power and permitting hurdles, local resistance, and the removal of a key partner, exposing risks in Oracle's AI infrastructure commitments.

Coverage timeline

  1. TechCrunch AIAditya Mehta
    Oracle sends force majeure notice on its New Mexico Stargate data center

    The notice would allow Oracle to delay payments should the facility miss its 2028 target to come online.

  2. Techmeme
    Project Jupiter, the New Mexico data center for which Oracle made major financial commitments, faces power and permitting hurdles, exposing Oracle's AI risks (Wall Street Journal)

    Wall Street Journal : Project Jupiter, the New Mexico data center for which Oracle made major financial commitments, faces power and permitting hurdles, exposing Oracle's AI risks — Oracle sent a force majeure notice to developer, has removed a key partner and faces local resistance in ‘Project Jupiter’

Related stories

  • FT: 47+ US data center projects delayed or blocked in 2026; Bernstein sees ~35% pipeline credible

    A Financial Times report finds that more than 47 large US data center projects were delayed, withdrawn, or blocked in 2026, reflecting the physical-world constraints on AI infrastructure bets. Bernstein estimates that only about 35% of the planned US data center pipeline is credible, highlighting the gap between ambitious expansion plans and economic realities.

    1 reports · 1 sources

  • AI Debt Concerns Rise as CoreWeave Bond Yields Top 15%, Oracle Debt Trades at Discount

    The New York Times reports that worries over AI-related debt are mounting, as CoreWeave's bond yield has surpassed 15%, insurance costs for SoftBank debt have risen, and some Oracle debt is trading near 80 to 90 cents on the dollar. These signs of financial strain at major data center players raise questions about broader risks in the AI infrastructure build-out.

    1 reports · 1 sources

  • Senate Democrats Question Meta's $6.6B Tax Credits for AI Data Centers

    Democratic senators on the Senate Finance Committee sent a letter to Meta CEO Mark Zuckerberg questioning the company's $6.6 billion in federal tax credits claimed over the past two years for building AI data centers described as 'experimental.' The letter raises regulatory concerns about the scale and nature of these tax breaks.

    1 reports · 1 sources

  • Musk confirms TSMC talks for Terafab chipmaking partnership

    Elon Musk confirmed on X that he is in discussions with TSMC about a chipmaking partnership for the Terafab project, adding to Intel's already-named role. Reports also indicate TSMC is exploring a presence in Texas, potentially using Terafab as an anchor client for a future factory. The project, with an initial investment of $16.8 billion and potential total of $119 billion, aims to produce about 1TW of AI compute annually.

    2 reports · 2 sources

News updates every hour. Subscribe in your RSS reader to get new stories automatically.

Subscribe