Oracle uses Bloom Energy fuel cells for US data centers to power AI

Oracle is adding Bloom Energy fuel cells to its US data centers. This is to help power the big increase in AI services, which need a lot of energy.
By Newsroom | Technology, Energy |

Powering the AI Surge

Oracle Cloud Infrastructure (OCI) is forging ahead with plans to integrate Bloom Energy's fuel cell technology across select U.S. data centers. This strategic move aims to address the escalating energy demands spurred by the boom in artificial intelligence and cloud services. Bloom Energy asserts its fuel cells will provide on-site power, capable of supplying an entire data center within 90 days, a crucial factor in the rapid deployment needed for AI infrastructure.

The pact positions Bloom Energy as a key infrastructure provider, moving beyond ideological associations and focusing on tangible energy solutions for critical digital operations.

Scale and Scope of the Deal

While specific financial figures for the Oracle agreement remain undisclosed, Bloom Energy reports a global track record of deploying over 400 MW of fuel cell capacity for data centers. The company's technology has previously supported clients such as Equinix, American Electric Power (AEP), and Quanta Computing. Mahesh Thiagarajan, executive vice president for Oracle Cloud Infrastructure, highlighted the robust demand for OCI services, particularly for its "large gigawatt AI data centers," and stressed the need for reliable, quickly deployable, and scalable clean power. Aman Joshi, Bloom's chief commercial officer, characterized the collaboration as delivering "ultra-reliable, clean, and cost-efficient power" to support Oracle's growth strategy.

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Broader Market Implications

The synergy between Oracle's AI ambitions and Bloom Energy's power solutions has already generated market interest, with Bloom Energy's stock experiencing a significant uplift following the announcement. This development underscores a wider trend where companies are actively seeking innovative energy sources to sustain the power-hungry nature of advanced computing. The situation is part of a broader context where the demand for data center power, especially for AI, is driving investments across various energy sectors, including clean energy and nuclear.

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Background

Bloom Energy, a California-based company, specializes in fuel cell technology. Oracle, a global technology giant, operates a significant cloud infrastructure arm, Oracle Cloud Infrastructure (OCI). The partnership addresses the critical need for substantial and reliable power to support the exponential growth of data processing and AI computations within OCI's facilities.

Frequently Asked Questions

Q: Why is Oracle using Bloom Energy fuel cells in its US data centers?
Oracle is using Bloom Energy's fuel cells to provide more power for its data centers, especially to support the growing demand for artificial intelligence and cloud services.
Q: How quickly can Bloom Energy's fuel cells power a data center?
Bloom Energy says its fuel cells can provide power for an entire data center on-site within 90 days, which is important for setting up AI infrastructure fast.
Q: What is the scale of Bloom Energy's fuel cell use in data centers?
Bloom Energy has already supplied over 400 MW of fuel cell power for data centers globally and has worked with other companies like Equinix.
Q: How does this partnership affect Bloom Energy's business?
Bloom Energy's stock price went up after the announcement, showing that investors are interested in their role in providing energy solutions for advanced computing needs.
Q: What is the main goal of this partnership between Oracle and Bloom Energy?
The main goal is to ensure Oracle has reliable, clean, and quickly deployable power to support its large AI data centers and its overall growth strategy.