Bloom Energy stock pops over 50% on back of massive new Oracle AI datacenter deal

Bloom Energy's stock has been booming this week thanks to a huge new deal with Oracle. Bloom's shares have soared over 50% in just the past five days, with most of that boost coming after the two companies announced on Monday that they will be expanding a previous deal. 

Oracle now plans to buy 2.8 gigawatts' worth of Bloom's fuel cell systems for its massive AI data center buildout. The software company has already contracted 1.2 gigawatts, with the deployment of the rest planned to finish in 2027. 

In a statement released on Monday, Bloom stressed the advantage of its quickly deployed modular fuel cell systems, which generate power from gases such as hydrogen, biogas, and natural gas without as much carbon pollution as traditional turbine plants. 

"Last year, Bloom Energy delivered a fully operational fuel cell system to Oracle in just 55 days — more than a month ahead of the anticipated 90‑day deployment schedule."

Ticker Wire reported in January on that 55-day turnaround, noting that traditional natural gas turbine plants typically take several months or years to come online. 

"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, executive vice president, Oracle Cloud Infrastructure.

This latest capacity order reflects the intentions of major tech companies to source power from more sustainable electricity options — or at least cheaper and quicker ones, which solutions like this and solar typically are as compared to slower and more expensive options such as traditional gas turbines and nuclear plants. 

AI data centers have become a flash point for communities across the country as concerns grow over the significant amount of energy and water they use. Many communities have pushed back against proposals of data centers being built nearby, and states are taking action to halt the construction of new data centers. 

While Bloom's Energy Server systems still produce some carbon pollution and are not exactly a panacea — an SEC filing reports that its fuel cells produce about 31% less carbon per megawatt-hour — the company does at least boast that there is minimal noise pollution. 

According to CNBC, under the current deal, Oracle was given the option to buy $400 million in Bloom stock at a fixed price, with a potential increase of over $315 million already reflected in the stock's current value. 

"We are delighted to expand our relationship with Oracle following an initial successful deployment," said Aman Joshi, Chief Commercial Officer at Bloom Energy. "Together, we are defining a shared vision for the future of energy and AI infrastructure."

Which of these savings plans for rooftop solar panels would be most appealing for you? Save $1,000 this year 💸 Save less this year but $20k in 10 years 💰 Save less in 10 years but $80k in 20 years 🤑 Couldn't pay me to go solar 😒 Click your choice to see results and earn rewards to spend on home upgrades.

Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.