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

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.