Oracle commits to bearing the risk of power delivery for the new Mexico data center

According to a report by the Financial Times, Oracle (ORCL.US) has promised investors that it will still ensure payments to them even if the large data center project in New Mexico fails to secure power supply before going live. According to sources, the technology group has issued a force majeure notice to the project developer—a subsidiary under Blue Owl Capital—regarding the project's power supply issue. Previously, the data center faced permit approval delays due to rising local opposition. However, under the terms of the contract, if the project is not ready by the deadline for phase one operations in the first half of 2027, Oracle is still obliged to pay a “holding cost” in lieu of rent for up to three years. “The risk of power delivery is borne by Oracle, not investors,” one of the sources said.