Shares of Oracle Corp rose about 4% on Tuesday, extending gains after a sharp 13% rally in the previous session, as investors reacted positively to its expanded energy partnership with Bloom Energy aimed at powering its growing artificial intelligence infrastructure.

The latest move follows Oracle’s agreement to acquire up to 2.8 gigawatts of fuel cell capacity from Bloom Energy, underscoring the scale of power needs driven by rapid data center expansion. An initial 1.2 GW has already been contracted, deployment is underway and is expected to continue into next year.

The deal highlights a critical shift in big tech’s strategy, where securing a reliable and scalable energy supply is becoming as important as computing capacity. With AI workloads increasing power consumption significantly, companies like Oracle are moving aggressively to lock down power infrastructure.

Bloom Energy’s fuel cell systems are seen as a faster alternative to conventional energy projects, allowing faster deployment and reducing implementation risks. These systems generate electricity through chemical reactions rather than combustion, providing a relatively clean solution with byproducts such as water and heat.

Mahesh Thiagarajan, executive vice president of Oracle Cloud Infrastructure, said the partnership is helping the company meet growing demand across the US. “By rapidly deploying Bloom’s reliable, efficient fuel cell energy, we are meeting our customers’ demands faster,” he said.

The agreement builds on Oracle’s broader push into AI and cloud infrastructure. The company has already raised over $100 billion in debt to fund data center expansion and is a key technology partner in the Stargate project, one of the largest AI infrastructure initiatives currently underway.

Separately, Oracle recently received warrants to purchase $400 million worth of Bloom Energy stock, deepening the strategic relationship between the two companies.

Despite the recent rally, Oracle stock is down about 15% so far this year.

Bloom Energy shares also reacted strongly, rising more than 23%, reflecting investor confidence in long-term demand for alternative energy solutions linked to AI growth.