Oracle’s declaration of force majeure on a giant US data center under construction showcased the risks to the AI infrastructure buildout, and amplified fears of the financial fallout should the apparent bubble pop. Officials where the facility is being built have delayed permits necessary to power the project, and Oracle may seek to delay lease payments.
Hyperscalers are racing to build data centers, but have faced mounting public opposition as well as pushback on planned developments to power the mammoth sites. As Semafor’s business and finance editor warned, the companies’ “exquisitely arranged patchwork of loans, insurance policies, and milestone-triggered payments” mean that “a single element falling out of place can expose financial backers and insurers to losses.”