Wisconsin regulators reject Oracle $7 bn power guarantee

A major artificial intelligence data center project in Wisconsin faces significant financial hurdles after state regulators refused to ease credit requirements, potentially forcing Oracle to post over $7 billion in collateral at an annual cost exceeding $100 million. The decision by the Wisconsin Public Service Commission (PSC) affects the planned $15 billion, nearly one-gigawatt "Lighthouse Campus" in Port Washington, a project being developed by Oracle in partnership with Vantage Data Centers and OpenAI.

The commission declined to act on a petition from Oracle to revisit a rule change it approved in April, which tightened financial security requirements for very large electricity customers of utility We Energies. Under the updated tariff, companies with a credit rating below A from S&P or A3 from Moody's must post collateral, such as cash or a letter of credit, to cover the cost of new power plants and transmission lines built specifically for their facilities. The regulator stated the rule is designed to protect existing utility ratepayers from having to shoulder the financial burden if a large project fails or is abandoned.

Oracle's challenge is compounded by a recent credit...