HPE to Deploy Networking Equipment Across Oracle’s AI Data Centers in Multi-Year Deal

Hewlett Packard Enterprise (HPE) and Oracle have announced an expanded networking collaboration under which Oracle plans to deploy HPE Juniper Networking equipment across its AI data centers worldwide as part of a multi-year agreement.

The agreement includes the HPE Juniper PTX and MX routing platforms, as well as the QFX and EX switching platforms. It also covers multi-year networking support services and financing capabilities. As part of the agreement, HPE has issued warrants to Oracle to purchase shares of HPE common stock.

HPE Juniper networking equipment already supports parts of Oracle Cloud Infrastructure (OCI), including data center and edge networks. The expanded agreement is focused on Oracle’s growing AI supercluster buildout, where large GPU clusters create significant demands for bandwidth, low latency, congestion management, and rapid fault recovery.

The latest QFX switches will provide high-density connectivity and advanced congestion management for large AI backend networks using RoCEv2 (RDMA over Converged Ethernet version 2). The technology is designed to support efficient communication between large groups of GPU accelerators that form the foundation of modern AI infrastructure.

The two companies are also developing intelligent telemetry tools designed to give Oracle deeper visibility into network behavior. The goal is to detect queue buildup, packet loss, and component degradation earlier, helping reduce disruptions and maintain high GPU utilization and network availability.

“Building AI infrastructure at Oracle’s scale requires an integrated ecosystem where every layer of the stack works together,” said Mahesh Thiagarajan, Executive Vice President of Oracle Cloud Infrastructure. He noted that HPE Juniper Networking has already become an important part of Oracle’s cloud architecture and now plays a key role in the company’s AI clusters, regional data centers, and edge networks.

The partnership announcement came alongside HPE’s third-quarter financial results. The company raised its fiscal 2026 revenue growth forecast to 34%–37% after reporting record quarterly sales driven by strong demand for AI servers and networking equipment.

HPE’s networking revenue increased by 75% to $2.9 billion during the quarter. Data center networking revenue more than doubled, while routing revenue increased by 270%.

Oracle is continuing to invest heavily in expanding its AI infrastructure. The company’s capital expenditures reached $55.7 billion in fiscal 2026, up from $21.2 billion in the previous year.

Oracle’s cloud infrastructure segment grew by 77% in fiscal 2026, while the company expects approximately $70 billion in net capital expenditures in fiscal 2027. These figures highlight the scale of investment required to build the next generation of AI data centers and cloud infrastructure.

ASAP and HPE – Partnership for Modern Networking Infrastructure

HPE is a partner of ASAP, with the partnership covering enterprise IT infrastructure solutions, including networking, server, and storage technologies. Through its collaboration with HPE, ASAP provides organizations with access to high-performance and scalable solutions for building and modernizing reliable IT environments.

The development of HPE Juniper Networking and its deployment across Oracle’s large-scale AI infrastructure demonstrate the growing importance of high-performance networking in next-generation data centers. The expertise of ASAP combined with HPE technologies helps organizations implement secure, resilient, and future-ready infrastructure solutions.