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Oracle triggers 'force majeure' on $165bn Project Jupiter data centre after New Mexico pipeline is blocked

From the Newshound archive · first published 25 September 2026.

Oracle triggers 'force majeure' on $165bn Project Jupiter data centre after New Mexico pipeline is blocked

Oracle has invoked a force majeure clause against developer Blue Owl Capital over Project Jupiter — its data centre development in Doña Ana County, New Mexico — after regulators twice blocked a natural gas pipeline that the site depends on for power. The legal notice gives Oracle grounds to withhold payments to Blue Owl should the facility fail to reach operational status by 2028, though the company remains committed as the site's primary tenant. Oracle shares dropped roughly 5% on the news, sending ripples through AI financing markets more broadly.

New Mexico's State Land Office refused a right-of-way for a 17.8-mile gas pipeline, first in March and then again in July, citing emissions concerns and strain on local water supplies.

MoreReutersOracle, Blue Owl project delay sends ripples through AI financing, sources sayMoneycontrolOFSS shares fall 4% as Oracle triggers 'force majeure' on data centre project over power delaysFinancial TimesOracle on the hook to pay data centre investors even if site has no electricityReutersOracle triggers 'force majeure' on data center project over power delays, source says
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