Donald Trump’s $500 billion AI infrastructure project is in major trouble in New Mexico, as a pivotal data center project appears to be shriveling on the vine.
Early on Thursday, the AI company Oracle sent out a notice of “force majeure” to the Blue Owl Capital, the lender backing a massive hyperscale data center critical to the president’s ambitious AI project, Bloomberg reported.
Typically reserved for unexpected catastrophes like the outbreak of war, natural disaster, or massive social upheaval, Oracle invoked force majeure in order to shield itself from financial liability over the project’s failure to secure certain development permits.
Zooming out, the notice is being viewed by financial commentators as an attempt by Oracle to wriggle out of responsibility for upcoming payments in the increasingly likely event that the data center isn’t finished by 2028.
