A Data Center Delay Raises Bigger Questions: A delay involving Oracle and Blue Owl’s massive New Mexico data center project is drawing attention across the AI infrastructure financing market. The issue highlights how power, construction and financing risks are becoming harder to ignore.

The Project at the Centre: The project, known as Jupiter, is a major data center campus being developed by a Blue Owl unit, STACK Infrastructure, to support OpenAI-related AI infrastructure.

Oracle Issues a Force Majeure Notice: Oracle issued a force majeure notice connected to potential delays at the project, with sources telling Reuters that securing power for the site was a key issue.

Why Power Matters: AI data centers require enormous amounts of electricity, making access to reliable power a critical part of infrastructure planning. Delays in securing that power can push construction schedules and expected returns further into the future.

A Potential One-Year Delay: A person familiar with Oracle’s notice told Reuters that the program was being delayed by about a year. Such a delay can affect when infrastructure becomes operational and when project-linked returns begin to increase.

Billions Are Already Invested: Blue Owl has about $3 billion of equity invested in the project, according to a person familiar with the terms cited by Reuters. Oracle is responsible for paying the project’s debt costs.

Investors Are Watching Closely: The episode is being discussed beyond the individual project, with bankers and investors examining how contractual protections handle unexpected delays in large AI infrastructure deals.

Financing Questions Are Growing: Lenders are increasingly examining how AI infrastructure risks are allocated, even as demand for computing capacity remains strong.

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