Part 4/7:
Future Investments: Capex Allocation Challenges
In the earnings call, there was a notable absence of discussions surrounding specific innovative projects, such as nuclear reactors, despite ongoing interest in alternative energy sources to sustain data center expansion. Lura highlighted that building data centers is a complex process. Securing land and energy sources along with constructing facilities involves significant lead times.
There is a growing conversation around alternative energy solutions like small modular reactors. However, the reality is that such initiatives would take years to implement fully. For the time being, Oracle must maximize existing energy sources, which presents challenges as they compete for these limited resources.