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Force majeure clauses, common in energy and commodities contracts, excuse a party from contractual obligations when events outside its control get in the way. Oracle is not seeking to exit as the campus’s main tenant, according to Bloomberg’s sources. Instead, the notice would allow the company to delay payments should the facility miss its 2028 target to come online.
… the notice follows a string of setbacks at the site, many of them tied to its energy supply. The campus, designed to handle 2.45 gigawatts, is meant to run on gas-powered fuel cells from Bloom Energy, which makes a reliable gas supply central to its timeline.
An Energy Transfer pipeline intended to deliver gas to the site has also been delayed nearly six months, to February 1, 2027, after regulators repeatedly denied permits for the line. In August, Bloomberg reported that the pipeline’s route had been changed following those rejections. A separate air-quality permit for the fuel cell system that would power the campus is also pending. The state’s environment department faces a November 23 deadline to decide.
Project Jupiter is one of the flagship sites of Stargate, the “AI” infrastructure initiative Oracle, [Closed Computing], and SoftBank announced with President Donald Trump early in his second term. The campus has drawn opposition from residents and environmental groups and has become a political flashpoint ahead of the midterm elections. Oracle has responded with a public outreach campaign in the state aimed at winning over the project’s critics, according to Bloomberg.
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It’ll be interesting to see this litigated; force majeure isn’t often cited and my non lawyer understanding says it’s more natural disaster or war than “the power company won’t hook us up”
Yeah, Force Majeure’s other name is an “act of god” clause. Something like the Cuban Revolution or other truly significant regulatory upheaval might qualify, a human-made force majeure event in the same way that a war is human-made, but this is going to be a huge stretch, verging on bad faith. Oracle just doing Oracle things, I suppose.
As I understand it, New Mexico is basically just saying, “make sure you account for water and electricity use.” The developer’s lawyers are going to have a very doable task to show that pushback on unfettered datacenter expansion was a foreseeable business risk. I think this is mostly a cynical tactic to renegotiate early in case the RPOs from OpenAI don’t materialize.
I’ve soured a bit on Ed Zitron as he’s clearly making a brand out of how confidently he’s asserting that the bubble will pop any day now, but I do think he’s zeroed in on some of the bizarre developments in the business world that will eventually result in said pop. Ed’s fun for venting, but Cory Doctorow seems to have a slightly more measured take. It certainly vibes with my doomer sentiments, but also doesn’t feel like the preaching is the product.