Oracle Cloud Infrastructure (OCI) has signed an expanded cloud agreement with the UK's Ministry of Defense (MoD).

The contract aims to help the MoD migrate legacy technology systems to OCI at a more rapid clip, helping the MoD to modernize and adopt new AI capabilities.

Also in the UK, an Oracle migration contract with the Bank of England has tripled in value from its original estimation.

MoD and OCI speed up migration efforts

By migrating some of its legacy systems to OCI, the MoD is aiming to become an "AI-ready organization" and is treating data as a "strategic asset." It is hoped that this will improve operational efficiency for the department and enable the MoD to use technology to serve national security.

Victoria Cope, commercial director at the Ministry of Defence, said: "The OCI agreement strengthens the long-standing strategic relationship between MoD and Oracle, and reflects the MoD's multi-vendor strategy to leverage the best available technologies to deliver operational outcomes and greater efficiency. This agreement also includes a commitment to digital skills development, education, and social value investment supporting the wider Defence and UK Government agenda to build a digitally skilled workforce.”

Jason Rees, SVP of technology engineering, Oracle EMEA, added: “The UK MoD is moving quickly to use data and AI in far more sophisticated ways to strengthen national security for UK citizens. Migrating workloads to Oracle Cloud Infrastructure will allow it to do this rapidly and at scale, without complicated and costly rewrites. The MoD will benefit from OCI’s in-built security and AI solutions, providing a resilient foundation for faster innovation, improved decision making, and mission-ready capabilities.”

The value of the Oracle contract was not shared.

In September 2025, the MoD signed a £400 million ($542.12m) agreement with Google Cloud that would see Google providing the UK with sovereign cloud capabilities based on the Google Distributed Cloud Air-Gapped offering. Earlier that year, the department put out a tender for a four-year £180 million ($242.45m) contract for AI and computing capabilities services.

Bank of England's Oracle bill triples

Meanwhile, earlier in January, reports emerged that the Bank of England's spend on migrating some of its core services to OCI had grown from an initially expected £7 million ($9.42m) to £21.5 million ($28.93m).

As reported by The Register and citing a recent procurement note, the bank had signed on Oracle implementation partner Version 1 to handle the migration. The latest increase to the contract was due to the need for "additional works, services or supplies" that "were not included in the initial procurement."

When advertised in 2022, the contract was valued at £7m, though it was actually awarded for £8.7m ($11.7m) in 2023. This was increased in February 2025 to £13.8m ($18.57m).

Towards the end of 2025, the Bank of England awarded several suppliers a total of £180m ($243m) in digital transformation contracts. Split into lots, the contracts included: Infrastructure Services; Platform Services; Recruit, Train, Deploy; Enterprise Services; Product Delivery and Management; Data Services; and Architecture, Transformation, and Advisory.

The Bank of England currently uses the UK's Crown Hosting Data Centres (CHDC) for information storage colocation services, as per a contract awarded in April 2024.