Bloom Energy shares surge over 20% to record high after securing major Oracle data centre power deal

Shares of Bloom Energy, a company that provides on-site power solutions, surged 24% on the NYSE on Tuesday, 14 April, hitting a fresh record high of $218.68 apiece after it signed an agreement to supply energy for Oracle’s data centre buildout, expanding the partnership between the two firms.

The company said on Monday that it will supply up to 2.8 gigawatts of fuel cell energy systems for Oracle, with an initial contract for 1.2 gigawatts of capacity. A gigawatt is enough electricity to power about 750,000 US households at any given time.

The energy supply from Bloom Energy will support Oracle’s artificial intelligence and cloud computing infrastructure.

Oracle has embarked on a massive construction programme to build an AI data centre for clients such as OpenAI and Elon Musk’s xAI and has said it expects to spend $50 billion on capital projects in the fiscal year ending May.

The push into providing cloud services for AI companies generated revenue of $4.9 billion for Oracle’s infrastructure business in the quarter ended February.

While Oracle was a latecomer to the cloud industry, it quickly recognised the artificial intelligence boom and rapidly built out data centres equipped with advanced processors, borrowing heavily to fund these expansions.

During the third quarter of fiscal 2026, the company revised its revenue forecast higher for fiscal year 2027 to $90 billion, easing concerns over its heavy spending on artificial intelligence infrastructure.

Oracle is expanding this relationship after Bloom Energy delivered a fully operational fuel-cell system in just 55 days—more than a month ahead of the anticipated 90-day schedule, the companies said in a statement, according to a Bloomberg report.

Bloom Energy relies on modular fuel cells that enable faster scaling of data centres compared to gas turbines, which can take months or even years to deploy due to supply chain constraints.

Other large companies are also leveraging Bloom Energy’s technology, including Intel, Conagra, FedEx, and Caltech. As a result, its revenue growth has accelerated sharply, with the most recent results showing revenue rising 37.3% in the fourth quarter to over $2.02 billion.

Bloom Energy delivers over 140% return in less than four months

The company’s stock has more than doubled in value this year as data centre demand has triggered an energy supply crunch. With today’s jump, the stock’s month-to-date gains have climbed to 60%, marking its biggest monthly surge since September 2025.

The rally has also contributed to a sharp 148% rise in 2026 so far, even after the stock delivered a massive 291% return in 2025, indicating strong investor confidence in the company’s growth prospects amid rapidly rising power demand driven by AI advancements.

(With inputs from Bloomberg)

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