Bloom Energy, the second largest holding in our Powering AI portfolio, has announced an expanded partnership with Oracle under which it will deploy up to 2.8 GW of its fuel cell systems (including the 1.2 GW already contracted) to support Oracle’s AI and cloud infrastructure. The deal could generate more than $8 billion product revenue for the company (which is expected to post $3 billion revenue in 2026) and a couple of billion dollars EBITDA.
This represents a significant step forward in the relationship between the two companies and provides further validation of Bloom’s solid oxide fuel cell technology for data center applications, as well as its ability to deploy quickly and scale with customers. As a reminder, Bloom’s systems are fuel-flexible (operating on natural gas, hydrogen, or blends), can be deployed within months, and deliver reliable, 24/7 baseload power directly on-site—bypassing grid constraints and enhancing resilience.
Beyond Oracle, Bloom retains meaningful expansion opportunities with existing customers such as American Electric Power and Brookfield Asset Management, one of the largest data center developers. More broadly, we believe the company is well positioned to win additional hyperscaler customers in the coming months, as its technology aligns closely with the evolving requirements of next-generation data centers.
Indeed, AI data centers are increasingly shifting toward high-voltage DC architectures (notably 800V DC) to eliminate multiple AC/DC conversion steps, simplify power distribution, and improve efficiency by an estimated 8–12%, while reducing infrastructure costs.
In this context, Bloom’s fuel cells offer a compelling advantage: they generate on-site high-voltage DC power, effectively eliminating the need for multiple voltage conversions. This can result in meaningful efficiency gains and potentially saving hundreds of millions of dollars per data center in conversion equipment.
In addition to these economic benefits, Bloom’s modular systems can be deployed significantly faster than traditional power infrastructure, accelerating time-to-power for hyperscalers—an increasingly critical factor as AI capacity demand surges.
Taken together, Bloom Energy is emerging as a key enabler of AI infrastructure buildout, with a technology platform well positioned to address the industry’s rapidly evolving power requirements.
