Data Center Costs Are Racking Up. What That Means for Oracle Stock Here.

Big tech companies are pouring massive amounts of money into artificial intelligence (AI) buildouts. The capex spending on AI is expected to be a whopping $1 trillion this year. Building data centers also carries the cost of increased power requirements. Tech giant Oracle Corporation (ORCL) is also a big part of this race.

The company might have to incur $7 billion in financial guarantees for its planned Wisconsin data center. Regulators have reportedly declined to ease credit requirements to protect the state’s residents from rising power costs. The planned data center is part of Oracle’s $300 billion computing infrastructure agreement with OpenAI to deliver nearly one gigawatt of computing capacity.