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Oracle, Blue Owl project delay sends ripples through AI financing

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Oracle, Blue Owl project delay sends ripples through AI financing

Business News Tech AI Oracle, Blue Owl project delay sends ripples through AI financing

Oracle's move to protect itself against potential delays at a massive data center project developed by Blue Owl in New Mexico sent a chill through the trillion-dollar market for AI infrastructure financing, according to interviews with bankers and investors.

Oracle 's move to protect itself against potential delays at a massive data center project developed by Blue Owl in New Mexico sent a chill through the trillion-dollar market for AI infrastructure financing , according to interviews with bankers and investors. Oracle issued a force majeure notice in connection with Jupiter, a data center campus Blue Owl unit STACK Infrastructure is building to support OpenAI , the latest setback for a sector where lenders and investors are growing more cautious about financing the industry's breakneck expansion. Blue Owl said the notice did not alter the parties' commitment to the project. Even so, the event is reverberating through discussions around other proposed data center financings, including SB Energy, which is developing a campus to serve OpenAI in Ohio, a person close to its financing said. SB Energy decided this week to delay its IPO.

Companies can use force majeure provisions when events beyond their control make it difficult to meet their contractual obligations. Lawyers say such provisions are becoming more common in data center development agreements, raising concerns among lenders and investors. "The financing side of the AI buildout is starting to ask much harder questions than the demand side," said Sean McDevitt, a partner at management consulting firm Arthur D.


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