Bloom Energy Secures Up to 2.8 GW Oracle Fuel Cell Deal, Shares Jump 14%
Bloom Energy will supply Oracle with up to 2.8 gigawatts of fuel cells for AI data centers, including an initial 1.2 GW slated for deployment this year and 2027. Shares climbed 14% in extended trading, and Bloom issued Oracle a warrant to buy 3.5 million shares at $113.28 apiece.
1. Expanded Oracle Capacity Agreement
Bloom Energy agreed to supply up to 2.8 gigawatts of fuel cell systems to Oracle for its AI data centers under an expanded master services agreement, with an initial 1.2 GW contracted for deployment this year and into 2027.
2. Market Reaction and Warrant Issuance
Bloom shares rose about 14% in extended trading following the deal announcement, and the company issued Oracle a warrant to purchase approximately 3.5 million shares at $113.28 per share, exercisable through October 2026.
3. Strategic Implications and AI Infrastructure
Bloom’s modular fuel cell technology offers faster onsite power deployment than gas turbines, addressing grid constraints and supporting Oracle’s rapid AI infrastructure build-out, while solid oxide systems generate electricity through chemical reactions with minimal emissions.