Oracle has agreed to buy power from Bloom Energy. This move aims to bolster the burgeoning artificial intelligence (AI) operations of software companies. In a press release, Oracle said it will acquire up to 2.8 gigawatts of power from Bloom for its data centers that handle AI applications. An initial 1.2 gigawatts has already been contracted and is expected to be deployed this year and in 2027 across Oracle projects in the US. Apart from this deal, the fuel-cell company has also disclosed that it has issued a warrant that will allow Oracle to purchase Bloom’s shares. The energy firm noted it had granted Oracle a warrant to purchase an estimated 3.5 million shares at $113.28 per share, which expires on October 9, as initially revealed by Bloom in October 2025.According to a Bloomberg report, Bloom shares rose about 14% in extended trading on the news, after closing at $176.67 in New York. The energy company’s stock has increased by over 100% this year, as datacenter demand has driven an energy supply crunch.
How Bloom partnership can help Oracle with its upcoming AI projects OpenAI and xAI
Oracle has started a large construction program to build AI data centers for clients such as OpenAI and Elon Musk’s xAI. The company said that it expects to spend $50 billion on capital projects in the fiscal year ending in May. This push into cloud services for AI companies generated $4.9 billion in revenue for Oracle’s infrastructure business in the quarter that ended in February.Bloom uses modular fuel cells that can help scale data centers faster than relying solely on gas turbines, which can take months or years to install due to supply chain delays. Power availability remains a key constraint when launching new data centers. Oracle is expanding its partnership with Bloom after the company delivered a fully operational fuel-cell system in 55 days, ahead of the expected 90-day timeline, according to the statement.The US power system is facing pressure from extreme weather and rising electricity demand. In response, technology companies are increasingly investing in dedicated power facilities to supply energy directly to their data centers instead of relying solely on the grid, the report adds.