Key facts
- Oracle is seeking to protect itself from potential cost increases related to a large data center project in New Mexico.
- The company sent a "force majeure" notice to the project's developer.
- The data center is dubbed "Project Jupiter" and is planned to come online in 2028.
- Oracle shares fell nearly 5% in premarket trading after the report.
- The developer of the project is a unit of Blue Owl Capital Inc.
Oracle Corp. is moving to shield itself from potential cost increases and payment obligations related to a massive data center project in New Mexico, known as "Project Jupiter," by sending a force majeure notice to the project's developer, a unit of Blue Owl Capital Inc. The move comes amid opposition and regulatory setbacks for the project, which is slated to come online in 2028. The technology giant is not attempting to walk away from the project but rather to defer payments should it be derailed. Shares of Oracle fell nearly 5% in premarket trading following the report, which was first published by Bloomberg News and corroborated by Reuters.