Oracle is insuring itself against costs in the event of a delay in the data center's launch. Its stock fell 5%.

Oracle shares fell more than 5% ahead of the opening of the main trading session in New York. The drop was triggered by reports that the company is trying to protect itself from significant costs in the event of a delay in the construction of a large data center.

Oracle is trying to avoid paying costs if the data center in New Mexico, known as Project Jupiter, fails to come online in 2028, Bloomberg reported on September 24, citing sources. According to the agency’s sources, the tech giant sent a notice to the project’s developer—a division of Blue Owl Capital—citing force majeure, or circumstances beyond its control.

Companies typically invoke a force majeure clause to be released from their contractual obligations when circumstances beyond their control arise, Bloomberg explains. In this case, rather than attempting to relinquish its status as the site’s primary tenant, Oracle is seeking to defer payments in case the project’s completion timeline is delayed, sources said. However, there is no certainty that this maneuver will free Oracle from its previously agreed-upon financial obligations, the agency notes.

An Oracle spokesperson told Bloomberg that Project Jupiter remains on schedule, but declined to comment on the notification. “We are fully committed to the project in New Mexico and confident in the path we have chosen,” he added.

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