Oracle Issues Force Majeure Notice on $165 Billion AI Data Center Project
Oracle has issued a force majeure notice to Blue Owl Capital regarding its $165 billion data center project, requesting a pause in rent payments if the completion is delayed beyond 2028. The New Mexico facility remains scheduled for 2028 but faces regulatory hurdles that could affect revenue recognition. The move highlights challenges in securing power and permits while gaining local acceptance despite strong federal support for AI infrastructure. This complexity benefits companies with existing data center infrastructure, such as Nebius Group and Iren, which are already seeing high-value megawatt deals due to rising demand. New entrants face significant obstacles including public opposition and legal delays that have affected $68 billion in projects this year alone. Companies like Oracle leverage their financial strength to navigate these challenges, but smaller operators may struggle.
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Topics: AI infrastructure Blue Owl Capital data centers force majeure Oracle