Oracle Faces $7 Billion Collateral Bill for Wisconsin Data Center After Regulator Tightens Credit Rules

@semianalysis_

MASSIVE DELAY ALERT TO ORACLE’S STARGATE SITE AND BLOOM ENERGY🚨🚨 Oracle’s Project Jupiter behind-the-meter datacenter project in New Mexico that plans to use Bloom Energy is at risk of a 1-2 year delay due to permitting and pipeline build

@semianalysis_

As we continue to monitor the status of datacenter delays, whether they are real, whether they are fake... some are out and out delayed because of -> building gas pipelines and receiving permits for power generation equipment. (2/8)

@semianalysis_

Oracle's proposed 2.45 GW Project Jupiter site in New Mexico can't run at any meaningful capacity until a 17 mile pipeline (the Green Chile Pipeline) connecting the El Paso Natural Gas (EPNG) system to a delivery meter station is constructe

@semianalysis_

The receipt station at milepost 0.00, which is where the pipeline physically connects to the EPNG system, sits entirely on state trust land. The state has said no.. twice! The second denial landed July 14. (4/8)

@semianalysis_

The 17 mile pipeline has a contractual in service date of August 15. A month away and the pipeline still does not have an approved route. The pipeline is only one of the hurdles Oracle has faced at this site — and they've tried/ could try

@semianalysis_

🟠 Plan B #1 — the regulatory fast-track. Transwestern, the company behind the pipeline, filed under FERC's ~60-day blanket certificate process instead of full 18–24 month Section 7 review. FERC's own staff protested, the reconciliation wind

@semianalysis_

And irrespective of the pipeline: the power generation plan itself still isn't approved. In April, Oracle and BorderPlex Digital Assets announced the switch from gas turbines to up to 2.45 GW of Bloom Energy solid oxide fuel cells — one of

@semianalysis_

However, the fuel cell Air Permit application is still pending as of mid-July. The New Mexico Environmental Department ordering a public hearing, but without a date set for it. Project Jupiter is the most delayed of the Stargate projects.

@shanumathew93

Remember when everyone said naaa dude we can do BTM and just plug in fuel cells Not that easy. Pipeline builds, gas access, air permits - this is all before the power starts even being delivered! These are massive science and infrastruc

@amir

new: Oracle's AI megacampuses in Wisconsin and El Paso are facing multibillion-dollar costs surprises. Local challenges are mangling AI data center economics...

@vestexchange

$ORCL is down about 3,5% in today's session, trading near its 52-week low, with enterprise software names broadly under pressure. An S&P Global downgrade to BBB- keeps scrutiny on the debt-funded AI expansion, with $95B in planned capex, a

@globalmktobserv

⚠️Oracle's credit risk has never been higher: Oracle's 5-year credit default swaps rose ~10bps to 198.23bps on Friday, the highest closing level on record, surpassing the previous peak of ~197.8bps reached during the 2008 FINANCIAL CRISIS:

@stockmktnewz

Oracle $ORCL stock hit new 52 WEEK LOWS again today 🔴

@globalmktobserv

RT @GlobalMktObserv: ⚠️Oracle's credit risk has never been higher: Oracle's 5-year credit default swaps rose ~10bps to 198.23bps on Friday…

@business

The cost of protecting Oracle’s debt against default hit a multi-year high Monday while its bonds sold off, as doubts grew over whether its massive AI investments will pay off

@ft

Oracle could face $7bn collateral bill for Wisconsin data centre

@firstsquawk

Oracle could face $7bn collateral bill for Wisconsin data centre - FT

@ft

FT Exclusive: The database group could face huge 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.