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 Oracle has issued a legal notice to the developer of 'Project Jupiter'—a massive artificial intelligence data center slated to come online in 2028—seeking to invoke a 'force majeure' clause following delays in a natural gas pipeline critical to powering the facility.

The force majeure provision offers contractual protection to companies when unforeseeable circumstances beyond their control disrupt the execution of agreements. Through this notice, Oracle aims to defer lease payments if the data center is not delivered on schedule. However, the developer—a subsidiary of Blue Owl Capital—must first formally recognize the incident as a qualifying event, and Oracle will still remain obligated to pay certain other fees and outlays.

Despite the legal maneuvering, Oracle maintained that Project Jupiter is not delayed and remains strictly on schedule. The tech giant reaffirmed its unwavering commitment to the New Mexico-based project and expressed absolute confidence in moving forward.

**Distressed Debt and Regulatory Roadblocks**
These developments unfold amid mounting concerns over the project's financial backing. An $18 billion financing package tied to Jupiter has slipped into 'distressed' territory, with loans held by financing banks trading down to between 89 and 91 cents on the dollar, according to media reports.

Adding to the financial pressure is fierce local opposition to the 1,400-acre development. Residents have voiced serious concerns regarding environmental impacts and noise pollution. A recent poll conducted by the Albuquerque Journal indicated that 65% of respondents oppose the construction of such projects in the state.

Furthermore, the site's natural gas supply plan has hit significant regulatory roadblocks. The State Land Office rejected both the original pipeline routing proposal and a subsequent revised plan, adding further layers of complexity to the infrastructure required to operate the colossal data center.

**Booming OCI Revenue and Massive Backlog**
These infrastructure hurdles coincide with Oracle's aggressive, hyper-growth phase in cloud infrastructure and AI. Sales for Oracle Cloud Infrastructure (OCI)—the division responsible for building and leasing AI data centers—surged by a staggering 121% in the latest quarter, reaching $7.4 billion.

Underscoring the sheer scale of this expansion, Oracle’s remaining performance obligations (RPO)—contracted revenue slated for future delivery—have swelled to approximately $664 billion. This figure highlights the massive growth commitments the company is juggling alongside its ambitious AI infrastructure rollout.