Oracle has agreed to purchase up to 2.8 gigawatts of fuel-cell power from San Jose-based Bloom Energy as part of an AI data center ramp-up.
In a statement, the companies said Bloom will initially provide 1.2 gigawatts of power, with deployment underway and continuing into 2027 across Oracle sites in the U.S.
“By rapidly deploying Bloom’s reliable, efficient fuel cell energy, we are quickly meeting the demands of our customers across the United States,” Mahesh Thiagarajan, executive vice president for Oracle Cloud Infrastructure, said in the statement.
The deal, made public on April 13, aligns with a growing industry shift toward onsite power generation, with tech giants increasingly opting to build their own self-powered data centers to bypass the power constraints of the electrical grid.
Oracle is poised to play a significant role in this shift, with the vendor set to build AI infrastructure for major players such as OpenAI and Elon Musk’s xAI.
Bloom said its technology is well-suited to support this use case — providing rapid deployment at scale. The company’s fuel cells operate on a plug-and-play model, providing immediate, onsite power that avoids reliance on the grid.
With power demands a crucial sticking point in data center development, power sources that promise rapid and scalable deployment are gaining increased attention.
This is not the first collaboration between the companies; the pair first came together last July, when Bloom said it would deliver energy to U.S. Oracle data centers within 90 days and delivered it in 55 days.
Also on April 13, Oracle agreed to purchase up to 3.53 million shares of Bloom Energy at $113.28 per share — representing a total investment of $400 million — as part of an October agreement.
Oracle stock spiked nearly 14% over the past five days, a surge that followed a round of layoffs totaling up to 30,000.
