Full Breakdown
Trump’s $500 Billion AI “Stargate” Project Hits Major Setback
By Drooid · · How we work
Project Jupiter Data Center Delays and Force Majeure
Oracle, the primary infrastructure partner for the New Mexico hyperscale data center, issued a force-majeure notice to Blue Owl Capital, the project’s lender. The notice—normally reserved for wars, natural disasters, or comparable catastrophes—was invoked to protect Oracle from financial liability after the venture failed to obtain required state and federal land-use permits. Financial analysts view the move as an attempt to avoid upcoming payments if the facility is not operational by the projected 2028 deadline.
Technical and Financial Challenges
The data center, slated to deliver 2.45 gigawatts of compute power for AI workloads, is only the first component of “Project Jupiter,” a segment of the broader $500 billion “Stargate” initiative that also involves OpenAI and SoftBank. Earlier reporting indicated Oracle abandoned plans for a large natural-gas power plant after permit setbacks and instead proposed using solid-oxide fuel cells (SOFCs). The largest existing SOFC deployment—an 80-megawatt project in South Korea—covers only a fraction of the 2.45-gigawatt capacity required, highlighting the experimental nature of the proposed solution. Lenders have expressed concern about the project’s financial viability since January, a period that also saw Oracle conduct emergency layoffs affecting thousands of employees.
Opposition and Regulatory Hurdles
Local opposition in New Mexico has intensified, with community groups and state officials questioning the environmental and land-use impacts of the megaproject. The inability to secure permits for both the data center and its original natural-gas power source underscores the regulatory obstacles confronting the venture.
Outlook and Potential Impact
If the New Mexico facility does not come online as envisioned, the first phase of Project Jupiter—and by extension a portion of the $500 billion Stargate plan—could face significant delays or scaling back. Oracle’s reliance on untested SOFC technology and the lingering permit challenges suggest that the timeline for delivering the promised AI compute capacity remains uncertain, with broader implications for the United States’ competitive positioning in the global AI infrastructure race.