Oracle (ORCL) stock surged by as much as 8% Tuesday morning on news that the data center and cloud operator has signed a deal to purchase as much as 2.8 gigawatts of fuel cell power from the energy provider Bloom Energy (BE).
Bloom stock surged nearly 20% on Tuesday morning.
The terms of the agreement expand on an existing partnership between Larry Ellison’s Oracle and Bloom. Bloom said in a press release that 1.2 gigawatts of fuel cell power capacity is already under contract, with deployment “underway and continuing into next year.”
Bloom’s modular fuel cell system can be “deployed far faster than traditional power solutions, enabling customers to accelerate time‑to‑power and reduce project risk,” Bloom said, citing delivery of a fuel cell system to Oracle in 55 days last year.
The fuel cells will provide on-site power generation to the data centers and other infrastructure underpinning Oracle’s AI ambitions, Bloom said.
The news comes as tech companies investing in artificial intelligence are striking deals to fulfill their energy needs.
Jake Conley is a breaking news reporter covering US equities for Yahoo Finance. Follow him on X at @byjakeconley or email him at jake.conley@yahooinc.com.
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