Oracle expands Bloom Energy deal for 1.2 gigawatts

Oracle expanded its deal with US fuel cell company Bloom Energy by contracting 1.2 gigawatts of capacity for US data centers.

It also received a warrant to buy up to 3.53 million Bloom shares at US$113.28 per share, or about US$400 million if fully exercised.

Oracle plans to procure up to 2.8 gigawatts of Bloom systems in total and expects to complete the first 1.2 gigawatts by 2027.

Bloom shares rose 15% after the announcement to about US$203, which is above the warrant exercise price of US$113.28 per share.

Bloom’s fuel cells are used for on-site power as data center operators seek more electricity for AI workloads.

🔗 Source: CNBC

🧠 Food for thought

Implications, context, and why it matters.

Third-party analysis ties the deal to Oracle’s broader US$30 billion push for onsite power at AI data centers, which could cut waits linked to grid connection timelines 1.
Oracle’s rush tracks with huge AI commitments, including a reported US$300 billion agreement with OpenAI, the company behind ChatGPT. Oracle also plans to expand Stargate, a major AI infrastructure project, with an additional 4.5 gigawatts of U.S. data center capacity 2, 3.
Bloom says it can deliver onsite power for an entire data center within 90 days. Bloom’s CEO also cited a hyperscale “AI factory” order delivered in 55 days against a 90-day commitment 4, 5.
Bloom also says it can directly produce 800-volt direct current (DC) power, which could fit future data center designs 5.

Oracle positions onsite generation as a primary power option for large cloud and AI data centers, as operators seek faster access to electricity for AI workloads 2.
Bloom said it lost a contract with Amazon Web Services, Amazon’s cloud computing division, in 2024. Bloom has also signed deals with multiple data center-related customers including Equinix, a data center company, and American Electric Power (AEP), a U.S. utility company 6.
Demand has reshaped Bloom’s business story, with its stock up roughly 400% over the past year and its product backlog up 140% year over year to about US$6 billion 7, 5.
Onsite generation could pressure the traditional utility business model as some tech companies turn to local power to meet AI infrastructure needs. The Oracle-Bloom announcement covers deployments at select Oracle Cloud Infrastructure (OCI) data centers in the U.S., rather than the buildout of “private power grids” 4.