-- Bloom Energy (BE) said Monday that it has expanded its partnership with Oracle (ORCL), signing a new master services agreement that could see Oracle procure up to 2.8 gigawatts of Bloom's fuel cell systems.
The deal aims to support the rapid buildout of Oracle's artificial intelligence and cloud computing infrastructure.
An initial 1.2 GW of capacity has already been contracted, with deployment underway and expected to continue into next year. The fuel cell systems will support Oracle projects across the US as the company scales its cloud platform.
The agreement builds on an existing relationship between the two companies and underscores a broader shift toward distributed, onsite power generation as demand for digital infrastructure accelerates, the company said.
Its modular fuel cell systems can be deployed significantly faster than conventional power solutions, helping customers reduce development timelines and project risk, Bloom added.
The company noted that it delivered a fully operational fuel cell system to Oracle in 55 days last year, ahead of the originally projected 90-day schedule.
Separately, Bloom said it issued a warrant to Oracle on Apr. 9 under terms previously disclosed in October.
According to CNBC, the warrant allows Oracle to purchase up to 3.53 million Bloom shares at $113.28 each, representing a potential $400 million investment tied to the earlier agreement. Oracle has until Oct. 9 to exercise the warrant.
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