To meet the massive demand for its cloud infrastructure services, Oracle Corporation plans to invest $10 billion in capital expenditures (CapEx), up from the $6.7 billion investment into data center build outs in 2022. The sizable increase reflects the sustained and continued growth of its Oracle Cloud Infrastructure (OCI) business, which represented $1 billion in revenue for the company’s fiscal year 2023 Q2. With its brisk pace of spending, it’s clear the company doesn’t see an immediate end to its cloud infrastructure growth.
Oracle CEO Safra Catz revealed the CapEx costs and announced strategies in the company’s December 2022 earnings call. The company’s Q2 revenue surprised many by growing by 25% in constant currency, exceeding the high end of its guidance by $200 million. Even more impressively, OCI consumption revenue, determined by a pay-as-you-go basis by usage, increased by 88%, and overall cloud revenue grew by 48% in constant currency.
As the hottest cloud provider at the moment, Oracle is poised to join “hyperscalers” Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) as number four — with a bullet.