Oracle to Spend $3B in Germany, Netherlands on Cloud, AI Infrastructure

Key Takeaways

• Oracle on Tuesday committed to spending $3 billion across Germany and the Netherlands to upgrade its cloud infrastructure in the countries.
• $2 billion will go to Oracle's efforts in Germany, with $1 billion allocated for the Netherlands.
• The tech industry has said it plans to spend hundreds of billions of dollars on new infrastructure to train and power AI products.

Oracle (ORCL) on Tuesday said it would invest a total of $3 billion upgrading its cloud infrastructure at its facilities in Germany and the Netherlands amid the tech industry's growing demand for artificial intelligence hosting capacity.

In a pair of statements, Oracle said that the spending efforts will lead to a "significant expansion of AI infrastructure capacity" in both countries, with $2 billion allocated for Germany and another $1 billion to be spent in the Netherlands over the next five years.

The company said the investments will help a wider range of public and private companies, along with local governments, "migrate any type of workload to the cloud, modernize their applications, and take advantage of the latest AI innovations."

Other tech giants such as Microsoft (MSFT), Meta Platforms (META), Alphabet (GOOGL), and Amazon (AMZN), along with smaller startups like OpenAI and xAI, have collectively committed to spending tens of billions of dollars on massive data centers both in the U.S. and abroad that can be used to train and run AI models.

Oracle is already part of a joint venture called Stargate, which will include itself and others like OpenAI spending hundreds of billions on building new AI infrastructure in the U.S.

Oracle shares were up about 1% in premarket trading. They entered the day up more than 37% since the start of the year, slightly below the record levels the stock reached earlier this month.

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