Oracle's BBB- credit rating, one notch above junk, triggered a We Energies tariff requiring a $7 billion letter of credit and over $100 million annually for its $15 billion, ~1GW Wisconsin datacenter. The Wisconsin regulator declined to reconsider the rule, forcing Oracle to challenge it in county court. This case highlights how 24 states now have large-load tariffs designed to prevent ratepayers from backstopping hyperscaler capex risk.
Counterparty credit risk is now a material constraint on gigawatt-scale datacenter buildout timing, increasing costs for sub-A- rated developers.