Story
September 24, 2026
Oracle’s Legal Safeguard Puts Its 2028 AI Promise Under a Brighter Spotlight
Oracle portrays its New Mexico AI campus as a routine, fully funded project still headed for its 2028 target. Investors, analysts and local opponents see the legal notice as a sharper reminder that power supply, permits and execution could yet test that confidence.
Oracle’s Project Jupiter is meant to be a flagship of the Stargate AI infrastructure push — and a major test of whether the company can turn its swelling demand for computing capacity into revenue.
The planned New Mexico campus is designed for 2.45 gigawatts of power, with gas-powered Bloom Energy fuel cells dependent on a reliable fuel supply. But the Energy Transfer pipeline intended to serve the site has been pushed back by nearly six months, to February 1, 2027, after permit denials forced a route change. A separate air-quality permit remains pending, with the state environment department facing a November 23 decision. Residents and environmental groups have also opposed the project, turning it into a political flashpoint ahead of the midterms.1
Against that backdrop, Oracle sent a force majeure notice to STACK Infrastructure, the Blue Owl Capital-owned developer of Project Jupiter. The notice could protect Oracle’s ability to delay payments if the campus misses its 2028 opening target, rather than signal an attempt to leave the project.2
Oracle’s position is that the filing is legal housekeeping, not an admission of failure. “Force-majeure notices are commonplace in developments of this scale,” spokesperson Michael Egbert said, arguing they “do not, by themselves, establish a project delay or change delivery expectations.” Blue Owl, STACK and Oracle, he added, remain “fully aligned.”2
Markets have read the move more cautiously. Oracle shares fell 5% after the news, while Blue Owl also declined. RBC analyst Rishi Jaluria said the notice suggested Oracle’s assessment of execution risk had shifted enough to warrant legal cover; any slip in 2028 could affect capacity delivery and revenue recognition. That matters as Oracle funds its AI buildout with tens of billions of dollars in borrowing and expects Project Jupiter to help convert its backlog into cloud revenue.3
For now, the company’s public message is unchanged: “Project Jupiter remains on our planned schedule,” Oracle said. “We are fully committed to New Mexico and confident in our path forward.”3