FreeTheAI

Oracle Proposes New Mexico Power Plan and Credits While Reaffirming Bloom Energy Role

MixedMedium impact
ORCL$140.65 2.37%BE$260.19 −0.80%

Oracle Corporation (ORCL) has proposed a 10-year energy service agreement with El Paso Electric to supply electricity for late-stage construction, initial commissioning, and emergency backup at its Project Jupiter artificial intelligence data center campus in Doña Ana County, New Mexico. Under the arrangement, Oracle expects to pay 10 million dollars annually. Additionally, the company outlined a separate proposal to provide up to 55 million dollars per year in direct electricity bill credits for up to three years to local residential and small business customers.

The agreement supports Oracle's efforts to expand its computing infrastructure while mitigating shared grid costs for nearby electricity customers. Oracle confirmed that Bloom Energy Corporation (BE) remains its primary power source, relying on a fuel cell microgrid planned for up to 2.45 gigawatts of installed capacity. Separately, Oracle joined Marvell Technology (MRVL) and Microsoft (MSFT) to launch an Open Compute Project working group focused on standardizing server hardware security for large-scale data centers.

Market participants will monitor regulatory reviews of the proposed utility agreement and the potential rollout of customer bill credits starting as early as 2027. Oracle shares rose over 1 percent to 139.10 dollars, though the stock remains down nearly 29 percent year-to-date. Bloom Energy shares dropped over 3 percent to 254.20 dollars.

Key points

  • Oracle proposed a 10-year power agreement paying $10 million annually to El Paso Electric for its New Mexico AI data center campus.
  • The proposal includes up to $55 million per year in power bill credits for local residents and small businesses starting in 2027.
  • Bloom Energy remains the primary electricity source for Project Jupiter, supplying up to 2.45 gigawatts of fuel cell capacity.
  • Oracle joined Microsoft and Marvell Technology in an Open Compute Project group to standardize data center server security.

Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org

How we writeDisclaimer

Questions and answers

What is Oracle's proposed power agreement with El Paso Electric?

Oracle proposed paying $10 million annually over 10 years to El Paso Electric to supply construction, commissioning, and backup power for its New Mexico AI data center. Oracle also proposed up to $55 million annually in bill credits for local electricity customers.

Is Bloom Energy still powering Oracle's Project Jupiter data center?

Yes, Oracle confirmed that Bloom Energy remains the primary power provider for Project Jupiter. The facility will be supported by up to 2.45 gigawatts of Bloom fuel cell microgrid capacity.

How did Oracle stock react to the power agreement announcement?

Oracle shares rose over 1% to around $139.10 following the announcement. However, the stock remains down nearly 29% for the year.