The company expects to boost its cloud infrastructure revenues after securing one of the largest agreements in its history, while its growth in data centers shows no signs of slowing down.
Oracle revealed this week that it has signed a cloud services contract valued at more than $30 billion annually, which will start reflecting in its financials from fiscal year 2028. The announcement, made through a communication to the U.S. Securities and Exchange Commission (SEC), marks a new milestone in Oracle’s transformation into one of the leading players in the global cloud market.
While the identity of the customer behind the agreement has not been disclosed, it is considered one of the most significant contracts ever announced by the company. CEO Safra Catz shared the news internally with her team on Monday, emphasizing that revenues from MultiCloud databases are growing at triple-digit rates and that demand is exceeding all forecasts.
Accelerated growth and insatiable demand for capacity
During the fourth-quarter fiscal results presentation held in June, Oracle had already mentioned a 70% growth in revenues from its cloud infrastructure (OCI) for the upcoming fiscal year. In this context, President and CTO Larry Ellison was emphatic: “Oracle will be number one in cloud databases, cloud applications, and cloud data centers. We will build and operate more data centers than all our competitors combined.”
The company currently operates 23 MultiCloud data centers —with direct interconnection to other hyperscale clouds— and plans to build another 47 in the next 12 months. Additionally, there are 29 Cloud@Customer data centers already in operation and 30 more under construction, offering public and managed cloud services at clients’ own locations.
“It’s an unprecedented situation in our history. The numbers are enormous, and we continue to receive more capacity requests than we can handle,” Catz stated.
Both Catz and Ellison agree that the current growth in the cloud business is a direct result of the explosion of demand, both in traditional enterprise cloud services and in new AI-related use cases.
Focus on AI and multicloud: keys to new leadership
Oracle is not only leading the traditional cloud segment but also positioning itself as a key enabler for organizations looking to leverage their own data with AI models. “We are providing the infrastructure that allows businesses to effectively use their data and AI models,” Ellison explained.
However, he clarified that many of the larger contracts are not directly related to AI, such as the case of Chinese retail giant Temu, which has opted for Oracle’s cloud services.
The growth of the committed project pipeline has also been staggering: it has increased by 41% year-over-year, reaching $138 billion, and is expected to double by 2026. Ellison even referenced the Stargate project, one of the most ambitious data centers in the world, of which Oracle is a key partner: “If Stargate meets expectations, we may have even underestimated our forecasts.”
Unprecedented investment to maintain momentum
With such demand, Oracle plans to invest $25 billion in capex by 2026, primarily in revenue-generating equipment, not in real estate. Catz warns that this figure “could fall short.” Ellison noted that the company is heavily investing in engineering and high-speed networks to reduce capital costs, one of the strengths recognized by analysts like SemiAnalysis.
The good news for Oracle is that, despite the component shortages affecting other sectors, the company has not had problems acquiring GPUs, allowing it to maintain its expansion plans without delays.
“We are deploying capacity as fast as we can. We don’t build unless we have confirmed orders,” Catz emphasized.
Oracle emerging as a new cloud titan
For fiscal year 2025, Oracle reported cloud infrastructure revenues of $10.2 billion, representing a 51% growth from the previous year. For fiscal year 2026, a growth of over 70% is expected, driven by new contracts, expansion of data centers, and the momentum of the multicloud business.
Catz concluded with a clear statement of intent: “Oracle is not only on track to become the largest cloud applications company in the world but also one of the global giants in cloud infrastructure.”
With this announcement, Oracle positions itself as a strategic player in the realm of artificial intelligence and global hybrid cloud, sending a strong message to competitors like Amazon Web Services, Microsoft Azure, and Google Cloud: the battle for cloud supremacy is wide open.
via: rcrwireless