letters of credit it must put up as collateral for new projects. Under the rule, companies that are not AAA credit risks (Oracle's debt rating is BBB, still investment grade but only 2 steps above junk bond status) have to post what is essentially a performance bond to assure that if its project
And now, Oracle wants a discount & the power company thinks that would be a smashing idea. If anything goes wrong though, it won't be the power company left holding the bag — it will be the rate payers.
isn't completed, the electrical utility will be compensated for its added infrastructure buildout costs. Oracle is the only hyperscale data center developer whose debt-to-equity ratio (415%) exceeds 80%. Meta, Alphabet, Amazon, Microsoft — none of them are above 80%. Of even more concern, Oracle
Any resemblance between the chart on the left and the one on the right is purely coincidental.
Curses! Foiled again!
carries $129.5 billion of debt on its books, but it also has roughly $100 billion in future data center & cloud lease commitments off balance sheet. In other words, Oracle is exactly the kind of customer that this rate structure was designed to protect against.
The Vice President of the United States thinks WWII ended through a negotiation.
😳
Less than 2 months ago, the Wisconsin PSC created a separate rate structure for large data centers & everybody, including We Energy & data center developers, pronounced themselves happy. Now they're back again asking that the terms be loosened because Oracle would need to pay too much for the
More on the Commerce Department's order shutting down access to Anthropic's Mythos and Fable 5 models.
I can't help but view this in the context of the Trump Administration's earlier designation as a supply chain risk.
If you want more information about Oracle's shaky finances, here's a good source.
