Oracle Makes Massive Clean-Energy Push to Feed Growing AI Power Demand

Oracle Corp. (NYSE:ORCL) said Tuesday it is investing in wind projects that will deliver more than 1.7 gigawatts of carbon-free electricity in Texas as the software giant expands its artificial intelligence infrastructure.

The projects will supply electricity to the Electric Reliability Council of Texas, or ERCOT, grid. That grid powers Oracle’s Abilene facility. The investment aims to support rising AI power demand while adding electricity supply to the Texas grid.

Oracle Targets AI Power Demand

Oracle said the projects should generate enough electricity each year to power the equivalent of more than 525,000 U.S. homes.

The investment also moves Oracle closer to its goal of matching 100% of electricity used by its current Texas AI data centers with carbon-free power. The company has set a broader goal of reaching that level for its Custom AI Data Centers by 2035.

“Oracle has set a goal to match 100 percent of AI data center electricity use with carbon-free electricity by 2035,” said Mahesh Thiagarajan, executive vice president of Oracle Cloud Infrastructure.

10 Wind Projects Planned

Oracle is investing across 10 wind projects with suppliers including Clearway Energy, ENGIE, RWE and Scout Clean Energy.

The company estimates the projects could avoid emissions equivalent to 1.8 million metric tons of carbon dioxide annually compared with the ERCOT grid.

The investment comes as Oracle expands AI and cloud infrastructure, which requires significant electricity capacity. Oracle said the projects will support that growth while adding renewable generation to the Texas power system.

Separately, Oracle on Tuesday released Java 27, adding new security, AI and performance features to its programming platform.

Stock Performance And Technical Analysis

Oracle stock traded about 1% lower Tuesday as investors pulled back from large-cap technology stocks. The Nasdaq fell 0.54%, while the S&P 500 declined 0.45%.

The stock has also struggled over the past year. It is down 52.56% over 12 months, leaving investors focused on whether it can rebuild its longer-term trend.

Oracle remains in a mixed technical setup. The stock trades 1.8% above its 50-day simple moving average of $140.76. However, it remains 12.1% below its 100-day SMA of $163.13 and 14.2% below its 200-day SMA of $167.10.

The 50-day SMA also remains below the 200-day SMA, maintaining the death cross formed in January.

Meanwhile, Oracle’s relative strength index stands at 45.38. That puts momentum in neutral territory.

Key support sits near $137. Resistance is around $159.50.

Analyst Outlook

Oracle carries a Buy consensus rating and an average price forecast of $249.64.

Freedom Broker maintained a Buy rating Monday but lowered its price forecast to $205. Argus Research maintained Buy with a $225 forecast. Stifel also maintained Buy and lowered its forecast to $200 on Friday.

Benzinga Edge Rankings

ORCL scores strongly on growth but remains weak on momentum and value, according to the Benzinga Edge scorecard.

Its Growth score stands at 97.42. However, Momentum is 5.37 and Value is 19.24. The combination points to strong underlying growth but a weak stock-price trend.

ETF Exposure

Oracle is a major holding in several technology-focused ETFs. It accounts for 7.28% of the REX FANG & Innovation Equity Premium Income ETF (NASDAQ:FEPI), 5.51% of the iShares Expanded Tech-Software Sector ETF (BATS:IGV) and 5.28% of the First Trust NASDAQ Technology Dividend Index Fund (NASDAQ:TDIV).

As a result, significant fund flows into or out of these ETFs can add to buying or selling pressure on Oracle shares.

ORCL Price Action

Oracle shares were down 1.07% at $143.24 at the time of publication Tuesday, according to Benzinga Pro data.

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