Oracle shares surge 4% after securing 2.8 GW Bloom Energy deal for AI data centers

Oracle shares gain 4%, extend rally after AI-driven power deal with Bloom Energy

Oracle shares extended gains after a major energy deal with Bloom Energy to secure 2.8 GW of fuel cell capacity for AI-driven data centres. The partnership highlights rising power demands from AI infrastructure and strengthens Oracle's cloud expansion strategy. Oracle Corp shares climbed about 4% on Tuesday, extending gains after a sharp 13% rally in the previous session, as investors reacted positively to its expanded energy partnership with Bloom Energy aimed at powering its growing artificial intelligence infrastructure. The latest move follows Oracle's agreement to procure up to 2.8 gigawatts of fuel cell capacity from Bloom Energy, underscoring the scale of power requirements driven by rapid data centre expansion. An initial 1.2 gw has already been contracted, with deployment underway and expected to continue into next year. The deal highlights a critical shift in Big Tech's strategy, where securing reliable and scalable energy supply is becoming as important as computing capacity itself. With AI workloads significantly increasing electricity consumption, companies like Oracle are moving aggressively to lock in power infrastructure. Bloom Energy's fuel cell systems are seen as a faster alternative to traditional energy projects, allowing quicker deployment and reducing execution risks. These systems generate electricity through chemical reactions rather than combustion, offering a relatively cleaner solution with byproducts such as water and heat. Oracle Cloud Infrastructure executive vice president Mahesh Thiagarajan said the partnership is helping the company meet rising demand across the US. "By rapidly deploying Bloom's reliable, efficient fuel cell energy, we are quickly meeting the demands of our customers," he said. The agreement builds on Oracle's broader push into AI and cloud infrastructure. The company has already raised over $100 billion in debt to fund data centre expansion and is a key technology partner in the Stargate project, one of the largest AI infrastructure initiatives currently underway. Separately, Oracle recently received a warrant to purchase $400 million worth of Bloom Energy stock, further deepening the strategic relationship between the two companies. Despite the recent rally, Oracle stock remains down about 15% so far this year. Bloom Energy shares also reacted strongly, rising over 23%, reflecting investor confidence in long-term demand for alternative energy solutions tied to AI growth.

Why is Oracle stock surging again today? By Investing.com

The primary catalyst behind Oracle's strong performance today (+6.8%) was a major energy infrastructure announcement that underscores the company's aggressive AI data center expansion strategy. Oracle announced an expanded partnership with Bloom Energy to support the rapid buildout of its AI and cloud computing infrastructure, with Oracle intending to procure up to 2.8 gigawatts of Bloom's fuel cell systems, including an initial 1.2 GW of capacity already contracted with deployment underway and continuing into next year. This partnership addresses a critical constraint in the AI infrastructure buildout: reliable, rapidly deployable power for energy-intensive data centers. The Bloom Energy deal carries additional financial significance for Oracle. Oracle was issued a warrant to purchase up to 3.53 million shares of Bloom Energy at $113.28 a share for a total investment of $400 million, and after the announcement, shares of Bloom soared 15%, lifting the stock to almost $203 and marking a $316 million gain for Oracle over the warrant price. This immediate unrealized gain provided an added boost to investor sentiment. Beyond the partnership announcement, shares of Oracle have benefited from recent momentum in the AI datacenter space, following sharp year-to-date underperformance due to financing concerns. The stock gained 12.7% on Monday. If the stock closes green today, it will be the third straight session of gains, something not seen in the stock since February. Oracle also leveraged its Customer Edge Summit to showcase tangible AI benefits. The company announced that its AI-driven programs helped residential customers save $369 million dollars on their electric and gas bills in 2025 alone. Oracle rolled out new AI-powered upgrades for its Utilities Industry Suite and Aconex project management platform, aimed at helping utilities reduce operating costs and improve reliability, while also announcing the launch of a new public cloud region in Casablanca, Morocco. These announcements demonstrated Oracle's ability to monetize AI across multiple industry verticals. The broader market context also played a supportive role in today's rally. The S&P 500 erased losses since the Iran war began, with market sentiment buoyed by optimism over a potential longer-term agreement between the US and Iran, with the S&P 500 and Nasdaq Composite advancing 1.02% and 1.23% respectively during Monday's session. Investors moved to buy the dip in high-quality SaaS names that had become significantly oversold amid a fragile market rebound driven by cautious optimism surrounding U.S.-Iran ceasefire talks. Oracle, having declined significantly year-to-date, benefited from this broader technical bounce in beaten-down technology names. The combination of company-specific AI infrastructure announcements, a financially accretive energy partnership, demonstrated AI monetization, and improved market sentiment created the perfect storm for Oracle's strong performance today. The stock's movement reflects investor confidence that Oracle's massive capital investments in AI data centers are progressing on schedule with critical infrastructure partnerships now in place to support future growth. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Bloom Energy Shares Surge on Expanded Oracle Partnership

Shares of Bloom Energy shot higher after the company signed an agreement to supply energy for Oracle's data-center buildout in an expansion of the two companies' partnership. Shares were up 21% at $213.75 in Tuesday morning trading. The stock has gained nearly one-and-a-half times its value this year. The company said Monday that it will supply up to 2.8 gigawatts of fuel cell energy systems for Oracle, with an initial contract for 1.2 gigawatts of capacity. The energy supply will support Oracle's artificial-intelligence and cloud-computing infrastructure, the companies said. Evercore ISI analysts said the expanded agreement supports their bullish view that Bloom is poised to be a winner in the AI infrastructure buildout. The agreement "reinforces a structural shift toward distributed, onsite generation, positioning Bloom as a key near-term beneficiary of grid constraints and AI infrastructure buildout, in our view," the analysts wrote in a note. Write to Elias Schisgall at [email protected]