Oracle could face more than $7bn in collateral requirements for a massive data centre in Wisconsin, after the state’s power regulator tightened credit rules to protect households from rising electricity costs.

The Public Service Commission of Wisconsin declined to reconsider rules imposed on utility We Energies, which would require Oracle to provide a $7bn letter of security at a yearly cost exceeding $100mn. The nearly one‑gigawatt centre in Port Washington underpins Oracle’s $300bn contract with Open AI for computing power.

Oracle, rated triple B at the time, asked a county judge to strike down the rule, arguing it imposes onerous financing costs and could deter future investment. The regulator said it “declined to take action on the petition.” Oracle remains hopeful the commission will reconsider, citing the $15bn project’s jobs and economic growth.

Scrutiny intensified after S&P downgraded Oracle to triple B‑minus, one notch above junk, citing uncertain profitability amid heavy AI spending. The case highlights growing state concerns that large‑scale AI infrastructure could become stranded assets; 24 states have adopted “large load tariffs” with collateral requirements.