Bloom Energy has struck an expanded partnership with Oracle to deliver up to 2.8 gigawatts of fuel cell power, bolstering the tech giant’s rapid build-out of AI data centres across the United States.
The agreement, disclosed after Monday’s trading session, comes mere days after Oracle received a warrant offering potential gains of $316 million on Bloom shares.
This builds on a collaboration launched in July, when Bloom pledged to supply energy to Oracle’s U.S. facilities within 90 days. Under the latest terms, Oracle has committed to 1.2 gigawatts, aiming for full deployment by 2027.
A Thursday SEC filing revealed the warrant, which lets Oracle buy 3.53 million Bloom shares at $113.28 each for a total of $400 million, linked to an October deal. Bloom’s shares soared 15 per cent to nearly $203 on the announcement, far exceeding the warrant price. Oracle has until 9 October to exercise it.
“By rapidly deploying Bloom’s reliable, efficient fuel cell energy, we are quickly meeting the demands of our customers across the United States,” said Mahesh Thiagarajan, executive vice president for Oracle Cloud Infrastructure, in the statement.
The development capped a buoyant day for Oracle, whose shares rose almost 13 per cent amid a rally in software stocks battered by AI concerns. Despite the gain, the stock remains 20 per cent lower year to date, with a further 1.5 per cent bump after hours.
Oracle is funding its infrastructure push, including these fuel cells at U.S. sites, through more than $100 billion in debt.
Bloom has capitalised on the AI boom, as data centre operators scramble for reliable, grid-free power amid surging electricity needs. Its modular fuel cells install swiftly, bypassing transmission delays. Shares have quadrupled since 2025 and more than doubled this year, lifting market capitalisation above $50 billion.
The firm has secured hundreds of megawatts via pacts with utilities like American Electric Power, data centre operators including Equinix and Oracle, and others. During an October deal with Brookfield Asset Management for AI facilities, Bloom CEO KR Sridhar remarked, “AI infrastructure must be built like a factory, with purpose, speed, and scale.”
Analysts at BloombergNEF predict fuel cells could exceed 10 gigawatts globally by 2030 to address grid bottlenecks. Oracle did not respond to requests for comment.