Closing a little higher on each of the past two days, shares of Bloom Energy (BE +0.92%) seem certain to extend the streak for a third day in the row. The company announced a partnership with Oracle (ORCL +0.75%) regarding powering data centers, and investors are over the moon about it.
NYSE: BE
Key Data Points
As of 10:28 a.m. ET, Bloom Energy stock is up 20.2%.
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Oracle has its sights set on a hydrogen-powered cloud
As artificial intelligence (AI) tools continue to escalate in popularity, demand for cloud computing is booming. This has led Oracle to partner with Bloom Energy for securing the power to keep its data centers operating smoothly. The new partnership will see Bloom Energy deploy its fuel cell solutions at certain Oracle Cloud Infrastructure (OCI) data centers located in the United States.
Speaking to the value of the partnership, Aman Joshi, Bloom Energy's chief operating officer, stated:
Oracle Cloud Infrastructure requires power solutions engineered to meet the performance and reliability demands of today's most advanced AI and compute workloads.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.
According to Bloom Energy, it will deliver its fuel cell-generated power for an entire data center within 90 days.
Does this deal move the needle for Bloom Energy?
It's unlikely that Bloom's deal with Oracle, in its current form, will be a game changer for Bloom. However, investors are, undoubtedly, charged up about the prospects of the company inking similar deals in the future. AI companies are making massive investments in data center infrastructure, and this may be the start of data center companies choosing hydrogen and fuel cell companies to meet their power needs.
Achieving varying degrees of profitability, Bloom Energy is one of the most alluring options for investors seeking fuel cell exposure, and this deal makes the company that much more interesting.
