Home / Business and Economy / Oracle Halts New Mexico AI Data Center Plans
Oracle Halts New Mexico AI Data Center Plans
24 Sep
Summary
- Oracle stock fell 4% on Thursday due to project issues.
- Company invoked force majeure to limit financial exposure.
- Project Jupiter faces regulatory setbacks and backlash.
Oracle's stock saw a 4% drop on Thursday following reports of the company seeking to reduce its financial commitment to a large-scale data center project in New Mexico. This move comes amid increasing opposition and regulatory obstacles for the facility, known as Project Jupiter.
According to sources, Oracle has notified Blue Owl Capital, the project's developer, of its intent to invoke a force majeure clause. This action aims to allow Oracle to defer payment responsibilities if the data center's construction timeline is significantly delayed, potentially pushing its opening to 2028.
Despite these financial adjustments, Oracle maintains its commitment to the project and its role as the primary tenant. A spokesperson affirmed that Project Jupiter is proceeding as planned and expressed confidence in the company's future in New Mexico.
Project Jupiter is a key component of a major AI infrastructure initiative involving Oracle, OpenAI, and SoftBank, designed to accommodate 2.45 gigawatts of power. However, the project has faced permit denials and public concern over its substantial power demands and local environmental impact.
