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**Oracle Projects Faster Revenue Growth Due to AI Data Centers**

By Anissa Gardizy

13 hours ago

Source: The Information

Oracle on Monday forecasts that strong demand for its artificial intelligence servers will help boost revenue 15% to $66 billion in the fiscal year that begins in June, compared to 7% growth on average in recent quarters. CEO Safra Catz also said she expects revenue to grow 20% in the fiscal year that ends May 2027 due to a backlog of AI server deals totaling more than $130 billion, thanks to customers such as OpenAI, XAI, Meta, and Nvidia. The comments came two months after Oracle announced a joint venture with OpenAI and SoftBank to develop data centers for the ChatGPT maker.

Oracle's ability to hit its revenue goals depends on whether it can expand the data centers it operates. Catz said she expects Oracle to spend $16 billion in capital expenditures for data centers, including Nvidia chips and other hardware, in the current fiscal year, up 50% from the previous fiscal year. That pales in comparison with its larger cloud competitors like Amazon Web Services, which is on track to spend more than $100 billion on capex in 2025.

Oracle's revenue from renting out cloud servers grew 49% to $2.7 billion in the quarter that ended in February, down from a 52% revenue growth rate in the November quarter. By comparison, Google Cloud revenue grew 30% to $12 billion in the December quarter, an arguably more impressive result than Oracle's.