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Oracle forecasts $166 billion in cloud revenue by 2030 as AI demand fuels growth

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Oracle (ORCL.N) expects its cloud infrastructure business to soar to $166 billion in annual revenue by fiscal 2030, nearly three-quarters of its total projected sales, as the company capitalizes on surging demand for artificial intelligence and cloud computing.

The forecast, unveiled by CEO Clay Magouyrk during a meeting with analysts, signals Oracle’s growing confidence that its cloud business will continue to expand well beyond its current customer base, which includes OpenAI and Meta Platforms.

CFO Dough Kehring said Oracle anticipates total revenue of $225 billion and adjusted earnings of $21 per share by 2030, outpacing Wall Street expectations of $198.4 billion in sales and $18.92 per share in profits, according to LSEG data.

The company’s cloud infrastructure bookings have ballooned, with Oracle reporting a $65 billion surge in new commitments over a single month last quarter — including a $20 billion deal with Meta. Magouyrk emphasized that the new commitments came from multiple clients, not just OpenAI.

In its most recent quarter, Oracle’s cloud revenue jumped 28% to $7.2 billion, underscoring rapid adoption of its AI and enterprise cloud services.

While the company’s gross margins are expected to fluctuate as it scales its infrastructure business, Oracle said its AI cloud margins will remain in the 30–40% range, while traditional enterprise cloud segments will maintain between 65% and 80% margins.

Oracle shares rose 3% after the forecast, though they dipped slightly in after-hours trading.

Meta to invest $1.5 billion in massive AI data center in Texas

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Meta Platforms announced plans to invest $1.5 billion in a new data center in El Paso, Texas, marking its 29th global facility and third in the state, as part of its ongoing expansion to support artificial intelligence workloads. The new site will be one of the largest in the U.S., capable of scaling to 1 gigawatt of power — enough to supply a city the size of San Francisco for a full day.

Expected to go online in 2028, the El Paso data center will create around 100 permanent jobs and employ more than 1,800 construction workers at peak development. Meta said it chose El Paso for its strong electrical grid, skilled workforce, and access to renewable energy.

The project is part of a broader race among tech giants to build infrastructure for AI. Amazon, Alphabet, Microsoft, and Meta together are projected to spend more than $360 billion in 2025 on cloud and AI infrastructure, most of it directed toward data centers.

Meta has already invested over $10 billion in Texas and employs more than 2,500 people statewide. The company said the new facility will be powered by 100% renewable energy and use a closed-loop, liquid-cooling system to recycle water continuously. It also pledged to restore twice the water consumed by the site to local watersheds, exceeding its 2030 sustainability goal of becoming “water-positive.”

Jon Barela, CEO of the Borderplex Alliance, which helped facilitate the project, described Meta as “the fastest gazelle in the industry,” noting that the deal stemmed from discussions with Texas Governor Greg Abbott’s office four years ago and was supported by a package of local tax incentives.

UK’s Nscale to supply Microsoft with 200,000 Nvidia AI chips in major data center deal

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Nscale, a British artificial intelligence infrastructure company backed by Nvidia, announced on Wednesday that it will supply around 200,000 Nvidia AI chips to Microsoft under an expanded partnership aimed at scaling data center capacity across Europe and the United States.

While the financial details were not disclosed, the Financial Times reported that the deal could be worth up to $14 billion, based on similar contracts. The agreement will be executed in collaboration with Dell Technologies, which will help deploy the AI hardware across Microsoft’s hyperscale facilities.

The rollout will begin next year, with Nscale supplying Nvidia GPUs from its data centers in Texas and Portugal, the company said. The project also includes a joint venture with Norway’s Aker, which will provide 52,000 additional GPUs from Nscale’s hyperscale AI campus in Narvik, Norway.

The partnership reflects the surging demand for AI computing power, as tech giants including Microsoft, Meta, and Alphabet race to build infrastructure capable of training and deploying massive AI models. According to Citigroup, global AI-related infrastructure spending is expected to surpass $2.8 trillion by 2029.

Nscale, which raised $1.1 billion in September from investors including Aker and Finland’s Nokia, said the funds will accelerate its data center expansion and position the company as a key player in the global AI supply chain.