We Energies says Oracle dispute won’t derail Port Washington data center
We Energies has assured investors that Oracle's legal challenge to Wisconsin's new credit rating requirements for large data center operators will not derail the planned hyperscale data center in Port Washington. Oracle is suing the Public Service Commission over a rule requiring high credit ratings or substantial collateral from data center developers to cover potential power plant construction costs, arguing the PSC overstepped its authority. Despite the dispute, We Energies expects the Port Washington facility to come online as planned by late 2027.
We Energies reassured its shareholders that a legal dispute involving Oracle will not impact the timeline for a planned hyperscale data center in Port Washington, Wisconsin. WEC Energy Group CEO Scott Lauber stated during an earnings call that the facility remains on track for completion by late 2027, despite Oracle's challenge.
Oracle, a co-developer of the Port Washington data center alongside OpenAI and Vantage, is disputing new credit rating requirements imposed by Wisconsin's Public Service Commission (PSC). In April, the PSC approved a rate structure requiring large data center operators to finance new power plant construction and maintain a AAA- credit rating or post substantial collateral to protect ratepayers from potential insolvency of a developer. This requirement could cost Oracle over $100 million annually due to its current BBB- credit rating.
Oracle has filed a lawsuit in Ozaukee County Circuit Court, asking a judge to reverse the PSC's rule, arguing it exceeds the commission's authority. We Energies, while an interested party, did not join Oracle's lawsuit and had its own request to reconsider the rule denied by the PSC. Lauber expressed optimism that the collateral requirements will not be a long-term issue and noted that ratings agencies reacted positively to the threshold. He also indicated that We Energies is in discussions with other, smaller data center operators interested in Wisconsin, for whom the new rules are not an obstacle.