Oracle Proposes Up To $55M In Annual Power Bill Credits, Reaffirms Bloom Energy's Role At Project Jupiter

The proposed agreement with El Paso Electric would require Oracle to pay $10 million annually for 10 years, even if electricity usage falls below contracted levels.

• The proposed agreement would support late-stage construction, initial commissioning, and emergency backup power at Project Jupiter.
• New Mexico residential and small-business customers could receive electricity bill credits for up to three years.
• Oracle previously outlined plans for up to 2.45 gigawatts of installed Bloom Energy fuel cell capacity, replacing an earlier gas turbine and diesel generator design.

Oracle (ORCL) announced Tuesday a proposed energy service agreement with El Paso Electric for Project Jupiter, its artificial intelligence (AI) data center campus in New Mexico, while reaffirming that Bloom Energy (BE) will remain its primary power source.

The proposed arrangement would provide electricity for late-stage construction, initial commissioning, and emergency backup power at the facility.

Oracle also outlined a separate proposal to provide up to $55 million annually in direct electricity bill credits for up to three years to El Paso Electric's residential and small business customers in New Mexico.

At the time of this writing, ORCL stock was trading more than 1% higher at around $139.

What Oracle's Power Agreement Covers

Under the proposed agreement, Oracle expects to pay $10 million annually for electricity over 10 years, even if its usage falls below contracted levels. 

The arrangement would help offset shared electricity system costs that would otherwise fall on El Paso Electric's New Mexico customers, said Oracle.

The separate customer credit proposal could begin benefiting households and small businesses in 2027. The company said its primary power arrangement for Project Jupiter remains unchanged.

“There is no change to our plan,” Oracle said, confirming that Bloom Energy's fuel cell microgrid would continue providing the site's primary electricity supply.

Bloom Energy's Existing Role At Project Jupiter

The announcement follows Oracle's April decision to use Bloom Energy fuel cells to power Project Jupiter in Doña Ana County. 

Under that plan, the campus would be supported by up to 2.45 gigawatts of installed Bloom fuel cell capacity, replacing an earlier design that relied on gas turbines and diesel generators.

Oracle Joins Marvell, Microsoft In Data Center Security Initiative

Separately, on Tuesday, Marvell Technology (MRVL), Microsoft (MSFT) and Oracle announced a new Open Compute Project (OCP) working group to standardize hardware security for cloud and large-scale data centers.

The group aims to develop open specifications for protecting encryption keys directly within servers, rather than relying on separate network-connected security systems. 

What Retail Thinks About ORCL Stock

On Stocktwits, retail investors’ sentiment around ORCL stock and BE stock remained in the ‘bearish’ territory.

So far this year, ORCL stock has fallen nearly 29%. By comparison, the iShares Expanded Tech-Software Sector ETF (IGV), which holds Oracle shares, has risen over 8% over the same period.

See Also: AAPL Stock Hits Record High As Apple Unveils HomeView, Revamps Smart Home Lineup

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