A weather-related power outage at an Oracle Corp. (NYSE:ORCL) data center caused technical disruptions for TikTok’s U.S. users days after the app shifted its American operations to new U.S.-led ownership.
Oracle Confirms Data Center Outage Impacted TikTok
On Tuesday, Oracle told Reuters in an email statement that a temporary power outage at one of its U.S. data centers disrupted TikTok’s services.
This led to performance issues for American users over the weekend and into early this week.
In a statement on its website, TikTok separately confirmed that a power failure at one of its U.S. facilities led to slower load times, posting problems and reduced engagement for some users.
In multiple updates posted to its website, the company said it was working to restore services after a data center outage and acknowledged a “major infrastructure issue” tied to the power failure.
TikTok said Tuesday it had made “significant progress” in restoring U.S. systems but warned some technical issues could persist, particularly when posting new content.
Service Disruptions Follow Major US Restructuring
The outage comes shortly after TikTok’s Chinese parent, ByteDance, finalized a deal creating a new joint venture to operate TikTok in the U.S.
This move was aimed at avoiding a potential nationwide ban.
Under the agreement, TikTok’s U.S. operations will be run by TikTok USDS Joint Venture LLC, led by former TikTok operations executive Adam Presser.
The U.S. and international investors will control 80.1% of the venture, with ByteDance holding a 19.9% minority stake.
Oracle, Silver Lake and Abu Dhabi-based MGX will each own 15% and act as managing investors.
User Deletions Surge As Privacy Concerns Grow
The disruption coincides with a spike in user skepticism following TikTok’s updated U.S. privacy policy tied to the new structure.
Market intelligence firm Sensor Tower told CNBC on Monday that daily U.S. app deletions have jumped nearly 150% over the past five days compared with the previous three-month average.
Some users have criticized the new policy language describing the potential collection of sensitive data categories, including demographic and financial information, adding to broader concerns about data handling as TikTok transitions to American oversight.
Price Action: Oracle shares closed Tuesday at $174.90, down 4.13%, but rose 1.16% to $176.93 in after-hours trading, according to Benzinga Pro.
Oracle stock scores low on Momentum and Value in Benzinga’s Edge Stock Rankings, reflecting a negative price trend across short, medium and long-term periods.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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