Oracle said flooding reached its Project Jupiter data center campus in southern New Mexico but did not damage any critical infrastructure, with the company maintaining that the massive artificial intelligence project remains on schedule.
Oracle and STACK Infrastructure issued the update on Sept. 30 as flooding affected communities across southern New Mexico, including homes, businesses, farms and roads. The companies said they are working with partners and insurers to address any impacts at the site.
“Our thoughts are with everyone affected by the recent floods in Southern New Mexico,” Oracle and STACK said in their joint statement, adding that “no critical infrastructure was damaged” at Project Jupiter.
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Project Jupiter, located in Doña Ana County, is designed to provide about 2.45 gigawatts of capacity and is part of the broader Stargate AI infrastructure initiative involving Oracle, OpenAI and SoftBank. OpenAI is expected to use the computing capacity hosted by Oracle.
The flooding comes as the project is already facing scrutiny over its development timeline and power infrastructure. On Sept. 24, Oracle issued a force majeure notice to the developer, STACK Infrastructure, over potential delays in securing power for the campus. Reuters reported that the move has raised broader concerns in the rapidly expanding AI data-center financing market.
Oracle has maintained that it does not expect the project to fall behind its planned schedule. Blue Owl Capital, which backs STACK Infrastructure, has also said the notice does not change the financial commitments to the multiyear project.
The campus is expected to rely on Bloom Energy fuel cells, while a natural gas pipeline intended to supply the project has faced permitting delays. A separate air-quality permit for the fuel-cell system is also pending.
Project Jupiter is among the major infrastructure commitments supporting the expansion of AI computing in the United States. OpenAI, Oracle and SoftBank announced the broader Stargate initiative in January 2025, with an initial plan to invest up to $500 billion in U.S. AI infrastructure over four years.
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The New Mexico campus is also backed by significant project financing. About $18 billion in loans have been associated with the development, according to recent reports, making the project’s construction progress important for lenders as well as its technology partners.
For now, Oracle says the flooding has not altered its planned timeline. The company said it will continue working with local leaders, partners and insurers as the region deals with the effects of the flooding.