Oracle has signed a massive cloud services contract worth $30 billion annually, set to begin generating revenue in fiscal year 2028. The deal represents the latest milestone in Oracle’s explosive cloud growth trajectory, with the company experiencing unprecedented demand that executives describe as “insatiable” and unlike anything in the company’s history.
What you should know: Oracle’s cloud business is experiencing triple-digit growth rates, with MultiCloud database revenue up 115% in the most recent quarter.
- The company’s pipeline of committed projects has grown 41% during the quarter to $138 billion, with expectations for more than 100% growth in fiscal 2026.
- Oracle Cloud Infrastructure (OCI) revenues are projected to grow 70% in the coming year, building on fiscal 2025’s 51% increase to $10.2 billion.
The infrastructure buildout: Oracle is rapidly expanding its data center footprint to meet surging demand for compute capacity.
- The company currently operates 23 MultiCloud data centers with 47 more planned for the next 12 months.
- It also runs 29 Oracle Cloud@Customer data centers, with 30 additional facilities under construction.
- Oracle expects to spend $25 billion in capital expenditures next year—potentially more—with the “vast majority” going toward revenue-generating equipment rather than land or buildings.
What they’re saying: Oracle executives emphasized the unprecedented nature of current demand levels.
- “This is a situation that we have not seen in our history,” CEO Safra Catz said. “And the numbers themselves are so enormous.”
- Chairman and CTO Larry Ellison described the demand as almost “insatiable,” adding: “People are calling up and asking us, ‘Please, can you find us more capacity? We’ll take it wherever. It’s in Malaysia? We’ll take it, fine.'”
- “We don’t build unless we’ve got orders for our capacity to be built out,” Catz noted.
The big picture: Oracle is positioning itself to become a dominant force across multiple cloud segments.
- Ellison promised that “Oracle will be the number one cloud database company. Oracle will be the number one cloud applications company, and Oracle will be the number one builder and operator of cloud infrastructure data centers.”
- The company expects to “build and operate more cloud infrastructure data centers than all of our cloud infrastructure competitors combined.”
Why this matters: While many large contracts stem from general enterprise cloud services rather than AI specifically, Oracle’s growth reflects the broader shift toward cloud infrastructure as businesses digitize operations and seek scalable computing resources.
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