Oracle on the hook to pay data centre investors even if site has no electricity

peri-cl•15 minutes ago

I'm very curious what happens now to the several gigawatts of fuel cells, that this project supposedly purchased to supply power.

> "Oracle signed a deal with solid oxide fuel cell (SOFC) developer Bloom last year for 1.8GW of power, expanding it to 2.8GW of capacity in April."

https://www.datacenterdynamics.com/en/news/new-mexico-regula...

https://en.wikipedia.org/wiki/Bloom_Energy

I was surprised to read we're already building fuel cell power plants on this scale (this is a first of its kind project—by far this startup's largest customer). I didn't realize the tech was that mature. Now I'm left wondering if they actually ever intended to, or whether this was some kind of circular financial-engineering vaporware.

Betelbuddy•about 1 hour ago

https://archive.ph/1JVq2

hn3ufz62f7•about 1 hour ago

Agreed, and most of these leases explicitly carve permitting out of force majeure since it's the tenant's job to get them.

runeks•about 1 hour ago

> The tech group has issued a force majeure notice related to the power supply to the project developer, a unit of Blue Owl Capital, after the site ran into permitting delays after rising local opposition.

Since when can failing to get a permit be considered force majeure?

Doesn't majeure specifically denote something large scale and out of anyone's control, such as a hurricane?

dgellow•about 1 hour ago

Oracle is in a pretty bad situation, it’s a desperate move. Their debt is rated just above junk since July. They are completely over leveraged. There is a reason the share price has been trending down so much

athrowaway3z•33 minutes ago

Its funny how before Oracle got in everybody was guessing who'd be swimming most naked when the tide goes out. CoreWeave obviously, but OpenAI likely as well depending on whom you'd ask.

With the contracts that "One Rich Asshole Called Larry Ellison" jumped on its without a doubt Oracle going down second if not first.

He's just gambling because he's old and feeling bold.

dgellow•24 minutes ago

I had that exact thought when SoftBank got involved :)

It’s like if I see the EU announce a large investment in AI, always makes me nervous given how we are often late to the party

Cpoll•22 minutes ago

> he's old.

He's only 82, and he's got a billion-dollar nonprofit dedicated to keeping him healthy. Don't count on him being on the way out.

surgical_fire•16 minutes ago

We have to account for the fact that Oracle is a law firm with a software branch attached to it.

Investors who (rightfully) see this "force majeure" claim as bullshit will have to drag Oracle through court, and Oracle probably counts on this taking years to get settled.

Oracle on the hook to pay data centre investors even if site has no electricity

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