Bloom Energy's stock price is up sharply this month after tech giant Oracle agreed to deploy its fuel cells at "select Oracle Cloud Infrastructure data centers" in the U.S.
The fuel cells will suport growing demand for Oracle's artificial intelligence and cloud computing services. Bloom, which has a manufacturing site in Newark, is able to deploy fuel cells, usually powered by natural gas, in 90 days. The fuel cells can even be operated from truck trailers. Bloom is based in San Jose, CA.
Contributing to investor interest in Bloom was news of Oracle will receive $30 billion in service revenue from another tech giant Open AI.
The Bloom-Oracle announcement offered no specifics but led to Bloom's stock price soaring more than 60% during the past month.
“We continue to see strong global demand for OCI services across our entire data center portfolio including our large gigawatt AI data centers,” said Mahesh Thiagarajan, executive vice president, Oracle Cloud Infrastructure. “Customers expect to run their AI workloads and new AI applications at peak performance. Bloom’s fuel cell technology will join OCI’s extensive energy portfolio, further supporting our cutting-edge AI infrastructure with reliable, clean power that can be quickly deployed and easily scaled.”
“Oracle Cloud Infrastructure requires power solutions engineered to meet the performance and reliability demands of today’s most advanced AI and compute workloads,” said Aman Joshi, chief commercial officer of Bloom Energy. “This significant collaboration provides Oracle with ultra-reliable, clean, and cost-efficient power that supports its growth strategy with the speed and certainty it needs.”
Bloom Energy has been making headway in providing power to data centers that consume large amounts of electricity and need to operate around the clock. Bloom fuel cells operate 24/7 and can feed power into the grid at off-peak times.
Bloom was also aided by a decision by the Trump Administration to continue to allow tax credits for fuel cells.
Bloom earlier announced agreements with Equinix, American Electric Power (AEP), and Quanta Computing. The agreements have led to Bloom stock price rising even before the Oracle announcement. So far this year, Bloom's stock prices up more than 48%.
So far, Bloom Energy has deployed fuel cells producing more than 400 megawatts at data centers.
Bloom will release its second quarter earnings report at the end of this month. The company has become profitable after a long string of losses.
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