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Oracle seeks payment delay on Project Jupiter AI data center campus
The notice would invoke force majeure to push back full rent payments for up to three years if opening is delayed beyond its 2028 projection, after the project already slipped by one year over power constraints.
Oracle is seeking to delay full rent payments on its Project Jupiter AI data center campus in New Mexico, adding pressure to debt-heavy development deals in the data center market, according to Bisnow.
Bisnow reports Oracle notified development partner Stack Infrastructure, owned by asset management firm Blue Owl Capital, requesting the delay tied to setbacks in moving the 1,400-acre project forward. The notice invokes a force majeure clause that could allow Oracle to push back full rent payments for three years if the project opening is delayed beyond its 2028 projection and the parties agree the delay stemmed from factors beyond their control.
The project has already encountered a one-year delay due to difficulties securing power for the site, Bisnow says. The pivot included changing its power strategy after local opposition to plans to use gas turbines and diesel generators, with Reuters and The Wall Street Journal cited in the report.