- ORCL
- OWL
- 9984.T
What happened:Oracle (ORCL) stock fell 6% on Thursday.
What’s behind the move:Oracle is taking steps to limit its financial exposure to a massive <a href="https://axiomcore.info/new-jerseys-largest-data-center-fined-1-07m-for-air-pollution-violations/" title="New Jersey's largest <a href="https://axiomcore.info/denton-residents-support-moratorium-as-city-weighs-future-data-center-development/" title="Denton residents support moratorium as city weighs future data center development”>data center fined $1.07M for air pollution violations”>data center planned for New Mexico as the project faces opposition and regulatory hurdles, according to a Bloomberg report.
The company has notified the project’s developer, a unit of Blue Owl Capital (OWL), that it is invoking a force majeure provision, according to people familiar with the matter.
According to the report, Oracle is seeking to delay payments if the project, dubbed Project Jupiter, is delayed and the facility does not come online in 2028 as planned.
Blue Owl Capital stock fell more than 1% on Thursday morning.
(ORCL)
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137.97-6.59(-4.56%)
As of 12:02:19 PM EDT. Market Open.
ORCLOWL
What else you need to know:Project Jupiter has been the centerpiece of a massive AI infrastructure build-out unveiled last year by Oracle, OpenAI (OPAI.PVT), and SoftBank (SFTBY).
The New Mexico campus is designed to handle 2.45 gigawatts of power, symbolic of the AI data center boom.
But the project has faced regulatory setbacks, including the denial of a key permit, amid growing public backlash over power demands and local impacts of massive data centers.
Ines Ferre is a senior business reporter for Yahoo Finance.
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