Wisconsin Regulator Upholds $7 Billion Oracle Data Center Collateral Rule

1 articles · Updated · Financial Times · Jul 20

Wisconsin’s Public Service Commission refused to revisit a tariff that would force Oracle to post more than $7 billion in security for a Port Washington data center.
The requirement stems from tightened credit rules for very large power users: developers rated below A- must backstop the cost of dedicated plants and transmission lines, and Oracle was rated BBB when the project was assessed.
Oracle says the annual cost of a letter of credit would exceed $100 million and has already asked a county judge to strike down the rule, though it says it remains committed to providing guarantees that shield ratepayers.
The setback complicates a nearly 1-gigawatt, $15 billion project tied to Oracle’s $300 billion OpenAI computing contract, while S&P’s recent downgrade to BBB- has sharpened scrutiny of its AI-funded debt load.
The dispute reflects a broader push by regulators to keep households from subsidizing AI infrastructure; 24 states have approved large-load tariffs for data centers and other heavy power users.