Oracle must post more than $7 billion in collateral for its planned AI data center in Port Washington, Wisconsin. The state’s Public Service Commission upheld strict credit rules to protect local ratepayers from infrastructure costs.
The collateral requirement follows S&P Global Ratings’ recent downgrade of Oracle to BBB-. This rating falls below the 'A-' threshold required by the utility provider, We Energies.
The nearly one-gigawatt facility supports Oracle’s AI expansion and a major computing contract with OpenAI. Servicing the required collateral could cost Oracle over $100 million annually.
Oracle is challenging the commission's decision in court. The company argues the mandate imposes burdensome financing costs that threaten future investment in Wisconsin.