The decision to move closer to a major health-care hub reflects Oracle's strategic push into the health care sector, with notable acquisitions such as the $28 billion purchase of Cerner.

Speaking at the Oracle Health Summit in Nashville, Ellison engaged in a candid conversation with former U.S. Senate Majority Leader Bill Frist. He discussed the company's plans to establish a "huge campus" in Nashville, which will ultimately become Oracle's new global headquarters. Ellison praised Nashville as an established health center and an attractive place to live, generating excitement among Oracle employees.

Although the announcement seemed impromptu, Ellison admitted, "I shouldn't have said that," during his discussion with Frist, who represents Tennessee and has extensive experience in the health-care industry. The relocation news comes after Oracle's previous headquarters move from Silicon Valley to Austin, Texas, in 2020.

Recognizing their relative newness to the health-care sector, Ellison expressed Oracle's commitment to addressing the industry's challenges, stating that the company believes it has a "moral obligation" to contribute solutions.

Nashville has long been recognized as a prominent player in the health-care landscape. The city boasts a thriving network of health systems, health-tech startups, and investment firms. Its reputation as a health-care hub began in 1968 when HCA Healthcare, one of the first for-profit hospital companies in the U.S., was established in Nashville. The presence of HCA helped attract a multitude of health-care professionals, prompting other organizations to join the city's robust health-care community.

Oracle's new $1.2 billion campus, a project in development for the past three years, will soon become a reality in Nashville. Ellison emphasized the positive response from Oracle employees regarding the move, indicating that the city holds great promise for their future endeavors.

CNBC reached out to Oracle for comment, but the company has not yet responded. While shares of Oracle experienced minimal movement in extended trading on Tuesday, the decision to relocate their world headquarters to Nashville demonstrates their commitment to the rapidly evolving health-care sector.

As Oracle prepares to make Nashville its new home, the move signals a significant milestone in the company's pursuit of innovative solutions within a booming industry.