Oracle’s Power Warning Puts an AI Data-Centre Deal Under Strain
Matthew Leo · September 26, 2026 · Business & Policy
Oracle has sent a force-majeure notice to the developer of its Project Jupiter data-centre campus in New Mexico, citing possible delays in securing electricity, according to Reuters' September 24 report. Oracle says the project remains on its planned schedule. Blue Owl, whose unit is developing the site, says the notice does not change the companies' financial commitments.
Those statements are not the same as a confirmed completion date. A person familiar with the deal told Reuters that the program faces a one-year delay; Oracle has not accepted that assessment publicly. The contract has not been published, so the exact trigger and financial effect of the notice cannot be checked independently.
Why power changes the contract
A data centre needs more than a building full of servers. It needs a power connection and enough dependable supply to run the equipment, along with cooling, permits and network links. Reuters' source said Oracle is responsible for securing power for Jupiter. Bloomberg reported that Oracle is trying to defer payments if the campus fails to open in 2028 as planned, rather than walk away from the lease.
That distinction matters. The question is not whether Oracle has cancelled an OpenAI computing project. It is which party carries the cost while construction continues but the site cannot yet deliver the contracted capacity. According to Reuters, Blue Owl has about US$3 billion of equity in the project, and a higher return begins when the facility is complete. A later opening would push back that step.
Project Jupiter is part of the wider Stargate AI infrastructure effort. Reports have put its loan financing at US$18 billion. The site has also faced reported pipeline setbacks and legal challenges involving water and air permits. Each issue has its own process; none should be treated as proof that the project will fail.
Why lenders are watching
In a later Reuters report, financiers described Jupiter as a test of how these agreements allocate delay risk. A highly rated customer does not make a grid connection arrive sooner. Investors need to know whether rent, interest, construction costs and guarantees still work if a campus opens a year late.
This is also the practical question behind Alberta's data-centre power debate. A signed commercial deal can leave ratepayers, utilities and developers with very different exposures. Canadian regulators should ask for evidence of secured supply and clear connection-cost rules before counting a proposed facility as future demand. Mapletechie's look at Nscale's gap between deals and revenue shows the related financing problem: a contract is not yet an operating data centre.
For now, the confirmed development is the notice and the companies' public responses. The reported delay, payment mechanics and final opening date still need documentary confirmation.
Tags: Oracle, Blue Owl, data centres, electricity