Oracle Invokes Force Majeure to Shield New Mexico Data Center Project
Oracle's Strategic Move Amid Data Center Challenges
Background of the Force Majeure Notice
Sept 24 (Reuters) - Oracle is seeking to protect itself from potential cost increases related to a large data center project in New Mexico by sending a "force majeure" notice to developer Blue Owl, Bloomberg News reported on Thursday.
Market Reaction to Oracle's Announcement
Shares of the company fell around 4% in premarket trading after the report, which cited sources familiar with the matter. Reuters could not independently verify it.
Details of Project Jupiter and Payment Delays
Oracle's Payment Strategy
Oracle is aiming to delay payments should the data center dubbed Project Jupiter get derailed and fail to come online in 2028 as planned, rather than exiting as the main tenant, according to the report.
Force Majeure in Corporate Contracts
Companies typically invoke force majeure to free themselves from contractual obligations when problems arise beyond their control. Oracle and Blue Owl did not immediately respond to Reuters requests for comment.
Reporting Credits
(Reporting by Jaspreet Singh in Bengaluru; Editing by Devika Syamnath)
