During Oracle’s third-quarter earnings call on March 12th, CEO Safra Catz announced plans for significant investment in data center construction and expansion. Oracle aims to spend approximately $10 billion in 2025, marking a substantial increase compared to previous estimates for 2024, which ranged between $7 billion and $7.5 billion.

Catz highlighted the company’s robust growth in infrastructure cloud services, reporting a 49% increase in revenue. However, she noted that supply constraints hindered Oracle Cloud Infrastructure’s potential for even greater gains.

Larry Ellison, Oracle’s chief technology officer and chairman, emphasized the company’s commitment to expanding data center capacity. Oracle’s aggressive approach mirrors a broader trend in the US and worldwide, where demand for data centers remains exceptionally high.

According to Turner & Townsend’s Data Center Cost Index 2023, 83% of respondents reported that data center construction struggled to keep pace with industry demand. This trend is reflected in rising construction costs, with global averages increasing by 6% in 2023 and 8% in 2022.

Ellison highlighted Oracle’s substantial infrastructure projects, including the construction of the largest data centers globally. Notably, Oracle is also undertaking significant projects for major clients like Microsoft and Azure, with plans to build 20 data centers for Azure and additional facilities to meet growing demand.

The global data center construction market is forecasted to continue growing, with an anticipated compound annual growth rate of 6.5% and a projected value of $73 billion by 2028, according to Research and Market reports. Oracle’s substantial investment underscores the critical role of data centers in supporting the expanding digital economy.