Oracle Issues Force Majeure Notice Over New Mexico AI Data Center Project
What happened
Oracle issued a force majeure notice to a unit of Blue Owl Capital, which owns the developer of Project Jupiter in New Mexico. This notice preserves Oracle's right to delay rent by up to three years if power problems prevent the campus from opening on time in 2028. Project Jupiter is a $165 billion AI data center campus built for OpenAI.
From indiatimes.com
Why it matters
The construction loan behind the site has traded at stressed levels, and Oracle shares are down more than 30% this year. The project is a flagship Stargate site, and the power plan for the campus is still awaiting approvals.
New Mexico provides state grants and support for data center construction projects involving Oracle, OpenAI, and Stack Infrastructure.
From indiatimes.com
Who's involved
- OracleSent the force majeure notice regarding the data center project.
- Stack InfrastructureIs the company building and supplying hyperscale data center facilities for Oracle.
- OpenAIIs the client for Project Jupiter, a flagship Stargate site.
- OWLOwns a unit of the developer receiving the force majeure notice.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Stack InfrastructureSpeculative
Could see project delays impacting their development timeline and revenue.
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The entities involved
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Oracle
company in Madrid, Spain
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Stack Infrastructure
American datacenter company
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