Oracle to spend $70bn on data centre build-out in coming year

June 11, 2026 - 11:24

Oracle announced plans to spend $70 billion on data centre construction over the next year, a massive investment aimed at expanding its cloud infrastructure. The company's aggressive build-out comes as it races to keep up with surging demand for AI and cloud computing services.

Despite the ambitious capital expenditure plan, Oracle's shares fell as much as 8% in after-hours trading. The drop followed the company's revenue guidance, which came in flat compared to analyst expectations. Investors appeared to focus on the lack of immediate growth rather than the long-term potential of the data centre push.

The spending spree will fund new facilities across multiple regions, with Oracle aiming to triple its current capacity. The company has been competing with larger rivals like Amazon Web Services and Microsoft Azure, and this investment signals its intent to close the gap. Oracle has also been winning contracts from governments and enterprises seeking alternatives to the dominant cloud providers.

The flat revenue outlook suggests that while Oracle is betting big on future demand, the payoff may take time. Some analysts questioned whether the $70 billion outlay could pressure margins in the near term. Others pointed out that Oracle's cloud business has been growing steadily, even if overall revenue has not yet accelerated.

The company's stock has been volatile this year, with investors weighing the costs of expansion against the potential rewards. For now, Oracle is doubling down on infrastructure, hoping that the data centre build-out will position it for a stronger second half of the decade.