Data Center
Bloom Energy: First Direct Hyperscaler with Oracle; More are Likely to Follow
Bloom Energy is retracing the 10% pop it saw yesterday from the news Bloom has agreed to supply Oracle with solid oxide fuel cell (SOFC) servers. Despite Bloom Energy being in direct contact with its first hyperscaler customer with Oracle, the drawback is that BE had already baked this into fiscal year guidance. Thus, the company was only able to reiterate fiscal year guidance of $1.65 to $1.85 billion, corresponding to YoY growth of 19.1%. Despite the weak price action from inflated expectations around the Oracle deal, there were many bright spots in the report. Bloom reported its third consecutive quarter of record revenue and profits and reported six consecutive quarters of profitability in the Services segment. Bloom also outlined a plan to double its factory footprint from 1 GW to 2 GW by the end of 2026 to meet growing demand, with this expected to cost ~$100 million, funded through a recent refinance of debt notes. To help compare, Data Center Frontier estimates that BE has deployed 400 MW of capacity to data centers this year, and has delivered 1.5GW of power in total across 1,200+ global installations. Therefore, 2GW exceeds Bloom’s total history of installations and is about 5X its 2025 data center business.
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