Oracle expands Bloom Energy pact, tees up as much as 2.8 GW of fuel-cell capacity after $400M warrant

April 13, 2026
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The deal

It has been reported that Oracle was issued a warrant to buy up to 3.53 million shares of Bloom Energy at $113.28 a share — a $400 million ticket — under terms announced last year. Days after that paperwork landed, the two companies said Oracle has contracted 1.2 gigawatts of Bloom fuel-cell capacity and intends to procure up to 2.8 GW in total, with the 1.2 GW slated for deployment by 2027. Shares of Bloom popped about 15% on the news, trading near $203 and creating what amounts to a roughly $316 million paper gain for Oracle versus the warrant strike price.

Details and market reaction

Bloom’s fuel cells supply on-site power without relying on grid hookups, which is exactly the kind of plug-and-play resilience data centers crave right now. “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, EVP for Oracle Cloud Infrastructure. Investors cheered not only Bloom but software names more broadly, sniffing value after a rough stretch for AI-heavy stocks; Oracle shares rallied too, though they remain down for the year.

Context and significance

This move leans into a clear trend: AI demand is sucking power into hyperscale data centers, and operators are hunting for fast, local, and reliable generation. Bloom already has deals with utilities and big data-center players — think Equinix, Brookfield, American Electric Power — and its market cap has surged into the billions as adoption accelerates. Oracle, which has borrowed heavily to finance a sprawling AI data-center footprint, is effectively marrying heavy tech capex with on-site generation. Practical? Ambitious? Both.

What’s next?

Oracle can exercise that warrant until Oct. 9. Will it buy the stock, flip it for a quick profit, or hold it as strategic insulation against power market volatility? Whatever the choice, the headline is clear: the energy layer under AI infrastructure is suddenly part of the strategic chessboard. Fast money or long game — take your pick.

Sources: cnbc.com