We just published our list of the 10 Cheapest AI Data Center Stocks to Buy According to Billionaires , and Oracle Corporation (NYSE: ORCL ) ranked sixth.
AI data center investment keeps expanding, but the companies supplying that capacity face different paths to profit. The International Energy Agency's October 2026 report estimates that hyperscalers will spend more than $700 billion on capital investment this year, mostly on new data centers. The report also points out constrained electricity networks, connection queues, and slow permitting as obstacles. For investors, spending commitments establish an opportunity. On the other hand, access to power and the ability to deliver working infrastructure determine when that opportunity becomes revenue. Our earlier 7 Cheapest AI Data Center Stocks to Buy Now explores the industry's broader investment universe.
Leasing figures show why developers keep building. CBRE's first-half 2026 report found that supply across primary North American markets rose 33.7% year over year to 10,903 megawatts, while vacancy fell to 1.4%. Customers had already committed to 80.4% of capacity under construction. Average asking rents for deployments requiring three to ten megawatts rose 8.3% during the first half. Those figures suggest that demand persists to absorb new supply. But preleasing cannot eliminate construction delays or guarantee a project's eventual profitability.
The next phase could require substantial financing. In its 2026 Global Data Center Market Outlook, JLL projects roughly 100 gigawatts of additional capacity between 2026 and 2030. It estimates approximately $1.2 trillion in real estate investment and another $1 trillion to $2 trillion in tenant equipment spending. These estimates cover different parts of the buildout. So investors should not add them to unrelated spending forecasts. They still show why investors must weigh financing needs alongside projected demand. More capacity can create sales opportunities. It can also raise interest costs, depreciation and competition.
Construction costs add another constraint since JLL forecasts an average shell-and-core construction cost of $11.3 million per megawatt in 2026, up 6% from 2025. That figure excludes the tenant's technology fit-out, which can cost as much as $25 million per megawatt for AI infrastructure. Therefore, the buildout reaches well beyond processors: electrical installation, cooling and site development all influence the cost and timing of new facilities. 7 Best Data Center Engineering and Construction Stocks To Buy examines that part of the supply chain.
Meanwhile, the IEA's April 2026 analysis projects that global data center electricity consumption will roughly double from 485 terawatt-hours in 2025 to 950 terawatt-hours in 2030. It expects AI-focused facilities to grow faster but warns that equipment shortages and grid constraints could limit near-term expansion.
That distinction matters when searching for cheap stocks. A low forward price-to-earnings ratio depends on an earnings forecast that may change. Investors should ask whether growth comes from sustainable customer demand, favorable component pricing, acquisitions or unusually strong margins. Our 8 Most Undervalued AI Stocks to Buy According to Hedge Funds offers another perspective on that valuation question.
Oracle qualified for our November 2 screen with a forward P/E of 16.11× and year-over-year quarterly revenue growth of 29.6%. We screened U.S.-listed AI data center operators and suppliers for a positive forward P/E below 20 and quarterly revenue growth of at least 15%. Insider Monkey counted 31 billionaire investors in Oracle in Q2 2026. Western Digital also had 31, and its lower forward P/E put it ahead of Oracle.
Oracle Corporation (NYSE: ORCL )'s AI cloud expansion creates a large revenue opportunity and a substantial funding requirement. Its fiscal first-quarter results showed revenue of $19.3 billion, up approximately 30%. Cloud infrastructure revenue increased 121% to $7.4 billion. GAAP EPS rose 55% to $1.56.
The same release reported negative free cash flow of $5 billion and a $20 billion common-stock sale during the quarter. Those figures make financing and shareholder dilution central to the investment case. Remaining performance obligations reached $664 billion.
On October 27, Oracle and NVIDIA announced plans to expand Vera Rubin infrastructure to multi-gigawatt scale and confirmed general availability of relevant systems on Oracle Cloud Infrastructure. The announcement pairs an existing service offering with a larger future expansion plan.
Total cloud revenue rose 62% to $11.6 billion, including $4.2 billion of cloud application revenue, up 10%. Faster growth in infrastructure shows where Oracle's demand is rising most quickly. Supplying that computing capacity requires data centers, hardware and financing, so delivery schedules and capital costs sit at the center of the business . 10 Best Cloud Computing Stocks to Buy According to Hedge Funds examines other cloud providers.
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