Oracle is seeking to protect itself from potential cost increases linked to a major data centre project in New Mexico by issuing a “force majeure” notice to developer Blue Owl, Bloomberg News reported on Thursday. The report, citing sources familiar with the matter, sent Oracle shares down around 4% in premarket trading. Reuters said it could not independently verify the report.
According to Bloomberg, Oracle is seeking to delay payments if the data centre project, known as Project Jupiter, faces disruptions and fails to become operational as planned in 2028. Rather than withdrawing as the project’s main tenant, the technology company is reportedly aiming to use the force majeure provision to limit its financial exposure amid potential project delays and rising costs.
Force majeure clauses typically allow companies to suspend or avoid certain contractual obligations when unforeseen circumstances beyond their control disrupt an agreement. Oracle and Blue Owl had not immediately responded to Reuters’ requests for comment.
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