Oracle Increases Capital Expenditures to $10 Billion to Keep Up with Cloud Infrastructure Demand

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.

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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.