Oracle Faces Potential $7bn Collateral Bill for Wisconsin Data Centre
Oracle could face $7B collateral bill for Wisconsin data centre
Oracle is confronting a massive financial hurdle as it may be required to post $7 billion in collateral for its Wisconsin data centre project. This significant demand stems from ongoing negotiations and regulatory pressures surrounding the facility's construction and funding, potentially straining the tech giant's resources and delaying its expansion plans in the region.
The $7bn collateral bill represents a stark reminder of the financial risks lurking behind the rapid expansion of AI infrastructure.
- VonGuard
Oracle cannot possibly be expecting to meet its bets here. My own empirical one-person observation is that my friend worked there in the group that went around the world standing up their new cloud datacenters, and he was there from basically 2019 to earlier this year. They laid him and half his team off earlier this year. Absolutely nonsensical if they're really building out cloud data centers. Because that's exactly what his job was for the previous 5 years....
Can anyone make that make sense? The team was like 15 people and is now 7. Not exactly a large enough team to build out billions of dollars worth of data centers... Maybe they're just going to contract that all out, but this guy and his team were a very smooth, very well greased machine for standing this stuff up quickly and reliably.
- cmiles8
Oracle is increasingly looking like the Lehman Brothers of the AI boom. One day it will all go pop and the cards will start crumbling elsewhere in the industry.
- JSR_FDED
Couldn’t happen to a nicer company
- chasd00
From what I can tell, the DC buildout isn't going that well. I've been wondering about the current status of the projects because there hasn't been much in the news or here about new DC's coming online. This report summary makes the point that getting power to the datacenters with onsite generation is running into roadblocks from permitting to even finding turbines to buy. He who shouldn't be named (here) made the same point in an interview that popped up on my youtube feed while pitching the datacenters-in-spaaaace angle. Software people are getting a lesson on the difficulties of utility scale power hardware.
https://cleanview.co/reports/behind-the-meter-data-centers
/can't read the article
- ChrisArchitect
Related:
S&P Global has lowered Oracle’s creditworthiness from BBB to BBB-