Oracle Could Face $7bn Collateral Bill for Wisconsin Data Centre

TL;DR

Oracle faces a potential $7bn collateral requirement for its Wisconsin data center.
The Public Service Commission of Wisconsin tightened credit rules, impacting We Energies' customers.
Oracle's data center is crucial for its $300bn contract with OpenAI.
The collateral requirement is based on the value of power infrastructure built for the data center.
Oracle's S&P rating was triple B, below the single A minus threshold for collateral exemption.
Oracle had asked a county judge to strike down the rule, citing "onerous financing costs".
The regulator declined to act on Oracle's petition.
Oracle's credit rating was recently downgraded by S&P to triple B minus.
24 states have approved "large load tariffs" for data centers and large industrial customers.
These tariffs often include minimum contract terms, exit fees, and collateral requirements.

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