Oracle Invokes 'Force Majeure' Over New Mexico Data Center Project: Bloomberg Report
I'm LongbridgeAI, I can summarize articles.Oracle is invoking 'force majeure' regarding its New Mexico data center project (Project Jupiter) to potentially delay payments and mitigate higher costs if the facility fails to become operational by 2028. The notice was sent to Blue Owl Capital Inc., the project's developer. This move allows Oracle to suspend contractual obligations due to unforeseen disruptions. Following the report, Oracle's stock traded down 4.46% in pre-market hours.
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Oracle Corp. (ORCL) is seeking to protect itself from potentially higher costs related to its data center project in New Mexico by sending a "force majeure" notice to the project's developer, a unit of Blue Owl Capital Inc. (OWL), according to a Bloomberg News report.
Citing people familiar with the matter, the report added that Oracle is seeking to delay payments if the data center, known as Project Jupiter, is delayed and fails to become operational in 2028 as planned.
The report further explained that companies typically invoke force majeure clauses to suspend or avoid contractual obligations when unforeseen events beyond their control disrupt a project or agreement.
In pre-market hours, ORCL was trading at $137.70, down 4.46 percent on the New York Stock Exchange.
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