Oracle (ORCL) Stock Surges Due to AI Growth, Taps Bloom Energy to Power Data Centers

Oracle has partnered with Bloom Energy to bring clean, reliable power to its AI data centers in the U.S. using advanced fuel cell systems. These systems can generate on-site electricity in under 90 days, helping Oracle avoid grid limitations while reducing emissions. This move directly supports Oracle’s long-term net-zero strategy.

Oracle’s Net-Zero and Emissions Reduction Strategy

Oracle plans to reach net-zero emissions across Scope 1, 2, and 3 by 2050, with a 50% reduction by 2030 based on 2020 levels. By 2025, Oracle wants all of its operations—including all Oracle Cloud Infrastructure (OCI) data centers—to run entirely on renewable energy.

Currently, Oracle sources 86% of its global electricity from renewable sources. In regions like Europe and Latin America, Oracle’s OCI data centers already operate on 100% clean power. These facilities are key to Oracle’s strategy to reduce emissions without slowing down cloud growth.

To support these goals, Oracle launched several sustainability initiatives:

• Cut employee air travel emissions by 25%.
• Reduced potable water usage and waste sent to landfills per square foot by 33%.
• Set a target for 100% of key suppliers to have environmental programs, with 80% having emissions-reduction goals by 2025.

Oracle’s circular economy strategy includes reusing and recycling hardware. Between 2015 and 2023, Oracle recovered nearly all of its retired equipment—between 99.7% and 99.9%—through recycling programs.

How Bloom Energy Supports Oracle’s AI Growth

AI data centers require a huge amount of power. Oracle’s new Stargate deal with OpenAI will need up to 5 gigawatts of computing power. That’s enough electricity to power millions of homes.

This is where Bloom Energy comes in. Its solid oxide fuel cells offer a clean, steady power supply without relying on the public grid. These systems produce electricity without burning fuel or creating air pollution, and they don’t use water. They help Oracle stay on track with its clean energy goals while powering high-density AI infrastructure.

• RELATED: Study Shows How AI Can Cut Over 5 Billion Tons of Carbon Emissions in 3 Key Sectors

Another major benefit is speed. Bloom’s fuel cells can be deployed in less than three months, offering a faster path to reliable energy for growing data center campuses. U.S. tax credits, like the 48E and 45V incentives, may reduce deployment costs by up to 30%, making the technology more affordable and scalable.

Bloom has deployed more than 400 megawatts of fuel cells worldwide. These are used in hospitals, factories, and data centers. The partnership with Oracle will likely expand that footprint significantly.

Greener Cloud Strategy: Oracle’s Efficiency and Innovation

Oracle’s cloud operations are designed to be energy efficient and environmentally friendly. The OCI Gen2 data centers reached 86% renewable energy use globally in 2023, with a target of 100% by 2025. In Europe and Latin America, those centers already operate entirely on renewable energy.

Power usage effectiveness (PUE)—a measure of data center efficiency—is a key strength of Oracle’s infrastructure. OCI data centers achieve PUE as low as 1.15, much better than traditional on-premises systems.

Moreover, Oracle moves customers to cloud-based platforms. This shift cuts hardware use by about 50% and lowers emissions.

Oracle’s software also supports sustainability:

• Oracle Analytics Cloud tracks environmental performance.
• IoT and supply chain tools help reduce transportation and supplier emissions.
• AI-powered dashboards detect anomalies and support accurate sustainability reporting.

Since 2015, these combined efforts have reduced Oracle’s logistics emissions by over 40% while delivering major cost savings across operations.

AI, Energy, and the Need for Clean Power

As AI workloads continue to grow, powering data centers with clean energy is becoming more urgent. The U.S. Department of Energy predicts that data centers could consume 12% of the country’s total electricity by 2028, up from 4.4% in 2023. Much of this growth will come from AI-related processing.

Oracle’s partnership with Bloom gives the company a competitive advantage. Fuel cells allow for on-site energy production. This helps avoid high grid prices, cuts fossil fuel use, and ensures energy is available during outages. It also helps Oracle meet customer expectations for low-emission AI infrastructure.

Each fuel cell deployment supports Oracle’s broader goal of achieving a fully renewable-powered cloud. In some cases, emissions reductions from fuel cell use could reach 30%, depending on how projects are structured and where they’re located.

Oracle’s Stock Surge and Investor Momentum

What’s Next? Scaling Fuel Cells and Future Innovations

Several developments could shape the future of this Oracle-Bloom Energy partnership and its climate impact:

Fuel cell rollout:

The specific locations and scale of Oracle’s Bloom deployments will affect how much of its AI capacity is powered cleanly.

Global renewable sourcing: 

Oracle is likely to expand renewable energy sourcing beyond its current regions. Company leaders are looking into nuclear options. This includes small modular reactors, which could provide long-term energy security for data centers.

• READ MORE: Larry Ellison’s $100 Billion Bet: Nuclear Power to Drive Oracle’s AI Revolution

Transparency and progress tracking:

Oracle’s annual Social Impact Datasheets will continue to report on progress in energy use, emissions reductions, supplier engagement, and recycling rates.

Sustainable AI practices: 

AI uses more energy now. Oracle’s low-PUE designs, liquid cooling systems, and real-time analytics can help cut emissions per workload.

A Clean Power Path for AI Infrastructure

Oracle and Bloom Energy team up to show how tech firms can grow AI infrastructure while keeping their carbon footprint low. The partnership combines quick fuel cell deployment with Oracle’s net-zero plan. This approach provides energy security while also cutting emissions.

Oracle’s approach—centered on renewable energy, smart infrastructure, and efficient data center design—offers a model for other cloud and AI leaders. As the demand for clean, scalable AI solutions rises, Oracle and Bloom’s joint efforts could help set new industry standards for sustainable innovation.

• FURTHER READING: 3 AI Companies To Watch in 2025 and How They Power the Net-Zero Revolution

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