Oracle invoked force majeure over possible delays in securing power at New Mexico’s Project Jupiter data center. Bloomberg said Oracle seeks to delay rent if the site misses its 2028 opening; a Reuters source said Oracle cannot terminate the lease.
According to the Reuters source, invoking force majeure extends the period in which Oracle pays lower development-stage rent. Blue Owl would still receive the higher rent for the originally planned duration, but it would start later. The source said Blue Owl earns a 9% yield on its equity during development; after completion, the project’s levered yield is expected to be about 11%.
Oracle said earlier that Project Jupiter remained on its planned schedule. Blue Owl, which owns developer Stack Infrastructure, said the notice does not change its financial commitments to the multi-year project. A source said Blue Owl has about $3 billion in project equity; media reports put bank loans at $18 billion. The 1,400-acre campus is part of Oracle’s broader agreement to provide AI computing capacity to OpenAI and has reportedly faced natural-gas pipeline delays and legal challenges over water and air-quality permits.
