Oracle sends "force majeure" notice on $165 billion data center

Oracle's move is a reminder that data center construction is not just a capital question. The company told Blue Owl Capital it wants the option to pause rent payments if the project slips past 2028, a request that puts the decision in Blue Owl's hands. Oracle also said its 2.45-gigawatt New Mexico facility is still on track for 2028, while pointing to the state's regulatory environment as an obstacle to revenue recognition.

The backdrop is that building AI data centers now involves securing power and permits and winning local acceptance. Between April and June, 45 data center projects were blocked or delayed due to public opposition, affecting $68 billion worth of projects, according to research group Data Center Watch. That environment may put a premium on operators that already have approvals and infrastructure in place, and it raises the bar for new entrants that lack Oracle's capital.

The stakes hinge on how Blue Owl responds and whether New Mexico's regulatory issues ease. If the pause is honored or contested successfully, the immediate cash timing changes; if not, the project's economics stay as planned. Either way, the episode is likely to be read as a signal about which builders can absorb delays and which cannot.