Oracle has revealed a significant milestone in its cloud operations with a new $30 billion-a-year cloud services contract, set to commence in fiscal year 2028. In a disclosure filed with the Securities and Exchange Commission, Chief Executive Officer Safra Catz indicated substantial growth in Oracle’s MultiCloud database revenue, which continues to expand at an impressive pace. Although the filing did not disclose the client’s identity, expectations are high.
Oracle’s recent financial discussions highlighted rapid growth in its MultiCloud sector. The company’s pipeline expanded by 41%, reaching $138 billion in committed projects during the latest quarter. Catz conveyed optimism that Oracle Cloud Infrastructure (OCI) revenues will surge by 70% in the coming year. The tech giant’s success can be attributed to its robust cloud offerings, which have captured a significant share of the market’s demand.
Larry Ellison, Oracle’s Chairman and Chief Technology Officer, made bold declarations during the latest earnings call. He promised, “Oracle will be the number one cloud database company. Oracle will be the number one cloud applications company, and Oracle will be the number one builder and operator of cloud infrastructure data centers.” These statements underscore Oracle’s unwavering commitment to strengthening its position in the cloud landscape.
The surge in Oracle’s data center operations highlights the growing appetite for cloud services. Oracle currently operates 23 MultiCloud data centers, with plans to add 47 more within a year. This rapid expansion fuels the 115% growth in MultiCloud database revenue reported in the last quarter. Moreover, Oracle plans to develop an additional 30 Oracle Cloud@Customer data centers by next year.
Meeting the skyrocketing demand for cloud infrastructure involves significant capital investments. Oracle projects capital expenditures of $25 billion next year, primarily for revenue-generating equipment instead of real estate. Catz stated, “We don’t build unless we’ve got orders for our capacity to be built out.” This strategic approach ensures Oracle’s growth is backed by dependable client demand.
With demand exceeding supply, Oracle’s data center capacity will continue expanding. The company’s revenue projections remain highly favorable, with cloud infrastructure revenue climbing by 70% in fiscal 2026. Oracle’s strategic investment in high-speed networking and engineering services aims to curb costs while meeting tremendous global demand.