Oracle raises S&P 500 cloud capacity with new data centres

KUALA LUMPUR, 21 JULY 2026 —

Oracle opened two new cloud regions in Frankfurt and Montreal on Wednesday, lifting its global footprint to 48 regions.

The Frankfurt site adds 100-megawatt capacity across three availability zones, while Montreal provides dual-zone redundancy with 75 MW, according to a company statement. The expansions follow Oracle’s announcement in June that it would spend an additional US$4 billion on cloud infrastructure in fiscal 2026, raising total planned capex for the year to US$11 billion.

“These regions give European and Canadian enterprises local access to compute, storage and AI workloads without leaving their jurisdictions,” said Clay Magouyrk, executive vice-president of Oracle Cloud Infrastructure, in the statement. The Frankfurt region went live with Oracle’s fourth-generation Ampere-based compute instances, which deliver up to 30% better performance-per-watt for general-purpose and memory-optimised workloads compared with prior generations, the company said.

The moves put Oracle on track to open 10 new regions in calendar 2025, matching the cadence it set in 2024. Analysts at Citi said the expansions would help Oracle close the capacity gap with hyperscalers that operate twice as many regions globally. Oracle now trails AWS’s 102 regions, Microsoft’s 60 and Google Cloud’s 40, the Citi note added.

In Asia-Pacific, Oracle already operates regions in Singapore, Tokyo, Sydney, Mumbai, Seoul, Hyderabad and Jakarta, with a Kuala Lumpur region announced in March and expected online in the second quarter of 2026. The Malaysian facility will include two availability zones and 50 MW of power, according to a filing with the Malaysian Investment Development Authority.

The Frankfurt and Montreal expansions follow Oracle’s decision in May to add GPU clusters in Phoenix and Ashburn for AI model training. Oracle said the new clusters use Nvidia H100 GPUs connected by 800 Gbps InfiniBand networking, cutting training times for large language models by up to 40% versus prior configurations.

Enterprise customers in financial services and healthcare are the earliest adopters of the new regions. DBS Bank said it would migrate European payment-processing workloads to Frankfurt to meet European Data Protection Board requirements, while Canada’s Telus Health will host patient-data analytics in Montreal to comply with provincial privacy laws.

Oracle’s cloud revenue rose 43% year-on-year to US$5.1 billion in the June quarter, according to its 10-Q filing, and now accounts for 32% of total company revenue. Analysts at UBS estimate each new region adds roughly US$150 million in annualised cloud revenue once fully utilised, implying combined annualised revenue of US$250 million from the two new sites.