Oracle Expands Partnership With Bloom Energy to Power Massive Data Centers
In Focus
- Oracle will purchase up to 2.8 gigawatts of fuel cell power from Bloom Energy
- Bloom Energy’s modular fuel cells can support data center scaling needs faster
- The company plans to spend up to $50 billion on capital projects this financial year
Oracle is expanding its partnership with energy provider Bloom Energy for the supply of power it needs to run AI data centers. The Oracle-Bloom energy partnership will see the software giant purchase up to 2.8 gigawatts of fuel cell power from the company.
Oracle’s Massive AI Infrastructure Project
Oracle’s demand for data center power is being driven by its massive AI cloud infrastructure projects. The company is establishing AI data centers to support customers like xAI and OpenAI. The company plans to spend up to $50 billion on capital projects in the financial year ending May 2026.
Earlier this year, the cloud service provider announced plans to raise up to $50 billion in equity and debt financing to expand its cloud infrastructure. In its third-quarter, Oracle reported that its cloud service business generated $4.9 billion in revenue.
This is not the first time Oracle is purchasing Bloom Energy fuel cell power for data centers. The software company had contracted the company to supply 1.2 gigawatts of capacity. Oracle plans to use this capacity this year and next year in the U.S.
“The expanded agreement with Oracle is a clear signal that hyperscale AI demand is translating directly into gigawatt-scale,” Evercore ISI analyst Nicholas Amicucci noted as cited by Bloomberg.
Bloom Energy Stock Surged on Partnership News
News about Oracle’s energy partnership pushed the Bloom stock up 14% in premarket trading. This year alone, the stock has gained more than 100% as demand for data centers drove an energy supply crunch.
Bloom has issued a warrant allowing Oracle to buy about 3.5 million shares at $113.28 each. The software giant has until October 9, 2026 to purchase the shares. Bloom disclosed the warrant for the first time in October 2025.
Oracle is expanding its fuel cell technology for AI data centers partnership after Bloom delivered an operational system within 55 days. This was more than one month before the lapse of the agreed 90-day timeline.
Bloom uses modular fuel cells to supply power. These cells can support data center scaling needs faster compared to gas turbines that take months or years to set up due to delays in the supply chain.
Strained Power Supply in the U.S.
In the U.S., the power supply problem is compounded by an aging power system in the U.S. that is strained by extreme storms. Tech companies are rushing to secure power to meet rising AI infrastructure electricity demand.
Increasingly, these companies are investing in large-scale power plants to supply energy directly to their data centers, bypassing the grid. Earlier this year, Meta signed three nuclear energy deals as part of a long-term plan to secure power for AI data centers.
