Here's How Oracle's "Force Majeure" Changes the AI Data Center Thesis
The "force majeure" shows how complicated it has become to construct a data center on time.
Overview
Artificial intelligence (AI) stock investors recently learned a French term after Oracle (NYSE: ORCL) issued a "force majeure" notice to Blue Owl Capital (NYSE: OWL) regarding Oracle's $165 billion data center project. This is a request from Oracle to pause rent payments if the project is delayed beyond 2028, but it is up to Blue Owl Capital to honor that request or challenge it in court.
Oracle said its 2.45-gigawatt New Mexico facility remains on track for completion in 2028 but flagged New Mexico's challenging regulatory environment as an obstacle to revenue recognition.
Image source: Getty Images
Details
Source
Originally published at www.fool.com.
Related Articles
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.