Bloom Energy's Stock Soars as AI Data Centers Embrace Fuel Cell Technology

Bloom Energy's stock is up 1,000% in a year because its fuel cells are solving AI's data center power problem | Fortune

Aerospace engineer KR Sridhar always dreamed big: He used to work with NASA on technology to convert carbon dioxide into oxygen to support life on other planets or let humans breathe air on Mars. But as the Soviet Union fell and the space race slowed, Sridhar pivoted to providing clean energy technology for the rising global middle class. He cofounded Ion America in 2001 -- renamed Bloom Energy five years later -- with a focus on fuel cells that deliver cleaner, on-site, off-grid power. Fast forward to today's AI race, and Bloom's products just so happen to mesh with the needs of the data center boom that's starving for massive power generation growth very quickly. Fuel cells can hypothetically bring power online for data centers in months, not years, because they do not have to wait for the backlog of gas-fired turbines or the long queue for grid interconnections. Bloom's stock price has spiked 1,000% in 12 months -- its market cap is now about $28 billion, up from $2.5 billion a year ago. The company has signed big data center deals with Oracle, American Electric Power (AEP), Equinix, and Brookfield Asset Management, the latter of which is a $5 billion partnership announced Oct. 13 to power AI factories globally, including Europe. Bloom CEO Sridhar actually had data centers in mind as a big opportunity when he first pitched the company at the turn of the century. But the massive growth didn't take off until after the ChatGPT launch. "That's when we said, 'Everything that we've been telling the world is going to happen is now going to accelerate,'" Sridhar told Fortune. "It's a 24-year journey for an overnight success," Sridhar said with a laugh. "I'm glad it's in my lifetime." Renewable wind and solar energy still have some intermittency issues, even with batteries. And a sufficient supply of gas-fired and nuclear power stations are several years away, he said. That's why on-site fuel cells are the answer, he says, both as a bridge and as a permanent power solution. The company's solid oxide fuel cells are a mature technology that have been developed over two decades. Thus far, Bloom has deployed 1.5 gigawatts of fuel cells -- enough to power 1.2 million homes -- with demand mounting by the day. The goal is to deploy 10 gigawatts per year from its manufacturing hubs in Fremont, California, and Newark, Delaware. Fuel cells have existed for years, but they've lacked mainstream adoption because of their high manufacturing costs. They require expensive precious metals, corrosive acids, or hard-to-contain molten materials. Bloom's solid oxide fuel cells use lower-cost ceramics -- no precious metals -- and they provide much greater electrical efficiency, operating at temperatures above 800 degrees Celsius. The cells convert natural gas, hydrogen, or biogas into electricity through a clean electro-chemical process rather than dirty combustion. The cells are zero-carbon if they use green hydrogen, but they're still cleaner than gas turbines even if they use natural gas. And the fuel cells are modular, so they can ramp up or down, or be relocated to other data centers when grid power becomes available. Sridhar acknowledged the long journey to get here. Bloom took seven years to develop the first commercial cells. And then another decade to continually bring the costs down and improve their efficiency. In the meantime, Bloom relied on "early adopter" Fortune 100 customers who were willing to pay extra to power for cleaner power, including Google, Walmart, eBay, and FedEx. For years, Bloom was hyped as a Silicon Valley unicorn, but in 2012 the SEC charged an investment bank working with Bloom of using inflated numbers to mislead investors. Bloom was not accused of wrongdoing, and the company eventually went public in 2018. The technology works more affordably now since fuel cell microgrids qualify for tax credits from President Trump's One Big Beautiful Bill, said Marina Domingues, head of U.S. new energies research for the Rystad Energy research firm. She said they are comparable to the price of power from combined-cycle gas turbines, but fuel cells can come online more quickly and produce power more cleanly. "Deta centers come with two main wish list requests. One of them is the power must be truly reliable," she said. "Another one, which is probably the toughest, is that they need power now," Domingues said. "They're offering a solution exactly at the same time developers need it. There's a lot of potential market growth for a company like Bloom." Much of the AI boom's focus is on massive hyperscaler campuses in rural areas, such as OpenAI's Stargate project in Abilene, Texas, and beyond. But Sridhar insists fuel cells will not only be helpful, they'll become imperative once the race is on to build more and more smaller data centers in increasingly urban areas closer to consumer demand. "The only two raw materials [that AI needs] are data and electricity," Sridhar said. "It's extremely electricity intense. They have to produce their own power on site. "You're not going to have any choice but on-site power, because no city has the distribution network that can accommodate those kinds of big [electricity] loads," Sridhar said, citing Memphis, Tennessee, as an example of public outcry amid rising emissions for powering data centers. "If it's in your backyard or outside your office window, you want it to be clean." Elham Akhavan, Wood Mackenzie senior microgrid research analyst, said Bloom's competitors -- including FuelCell Energy, Doosan Group's HyAxiom, and Plug Power -- offer different variations on the technology but they have not yet scaled up as much as Bloom. As the technology advanced, the fuel cell sector was able to reposition itself from being a mere provider of backup power to a primary power source -- with the grid as the backup, she said. "Bloom led fuel cell deployment across North America way before data center demand arrived," Akhavan said. "It's a prime power solution in a very small footprint, and rest of the land is available for the data centers." Domingues said Bloom has a multitude of factors working to its advantage, including a head start on competitors, a domestic manufacturing chain when Trump is pushing onshoring and tariffs, and an early bet on fuel cells for "stationary power" when many potential rivals focused on fuel cells for the transportation sector. "Bloom bet on the stationary power path, and they also had strong relationships with some of the traditional data center market," Domingues said. "That allows them some competitive advantages against their peers." The company is currently unprofitable. Bloom operated at a $29 million net loss in 2024, improved from a roughly $300 million loss in 2023. But Bloom also lost $66 million in the first half of 2025. Sridhar insists the lack of profitability will be short lived. "We are not one of these companies that has to invest, invest, invest. We've already done that part the last 20 years. We have the flywheel spinning already. Accelerating is going to take less and less energy." Sridhar said Bloom intentionally built its manufacturing plants as exact copies so they can continue to scale up more quickly to match demand and offer rapid returns on investment. "We believe the market demand is going to be there because electricity abundance is what's going to generate a better quality of life and wealth in a digitized world," he said. Sridhar is still inspired by his dreams of Mars: "Living off the land is truly what an explorer does. So, I started producing oxygen, breathing air, water, electricity, heat on Mars so someday humans can live there," he said. On Earth, "Clean energy is what we need on the planet in a very reliable way, everywhere, and with access."

AI fever fuels Bloom Energy's 25% surge after Brookfield strikes game-changing data center deal

Shares of Bloom Energy soared early Monday after it made a deal with Brookfield Asset Management to install fuel cells in artificial intelligence data centers. Brookfield will spend up to $5 billion to use Bloom Energy's technology. This is Brookfield's first investment in its strategy to support large AI data centers with both power and computing infrastructure. Bloom Energy's fuel cells are "fuel-flexible" and can run on natural gas, biogas, or hydrogen, according to the company. Brookfield and Bloom will collaborate to design and build "AI factories" around the world, including a site in Europe that will be unveiled before the end of the year, as stated by CNBC report. Bloom energy stock surge Bloom Energy shares jumped almost 30% in early trading after the announcement. Bloom's fuel cells provide onsite power and can be installed quickly because they don't rely on a connection to the electric grid. The company has already installed hundreds of megawatts of fuel cells through deals with utilities like American Electric Power and data center developers such as Equinix and Oracle, according to Bloom Energy, as mentioned in the report by CNBC. AI data centers need off-grid power The AI industry's data center plans are growing fast. For example, Nvidia and OpenAI recently announced a partnership to build 10 gigawatts of data centers, which equals the power used by New York City during peak summer. AI companies face a problem: the U.S. electric grid is old and often slow to provide extra power. Building new data centers could also raise electricity prices for homes. Deploying "behind-the-meter" power solutions (off the grid) is essential to closing the grid gap for AI factories, said Sikander Rashid, Brookfield's global head of AI infrastructure. KR Sridhar, Bloom Energy CEO, said, "AI infrastructure must be built like a factory -- with purpose, speed, and scale." Nvidia CEO Jensen Huang told CNBC last week, "Data center self-generated power could move a lot faster than putting it on the grid and we have to do that." Huang added that the AI industry will need off-grid power to quickly meet demand and protect consumers from rising electricity prices. FAQsQ1. Why did Bloom Energy shares jump 30% recently? Because Bloom Energy made a $5 billion deal with Brookfield to supply fuel cells for AI data centers. Q2. What is Brookfield and Bloom's plan for AI data centers? They will build "AI factories" using Bloom's fuel cells to provide fast, off-grid power for AI data centers worldwide.

Why Is Bloom Energy Stock Skyrocketing Monday? - Bloom Energy (NYSE:BE)

Bloom Energy Corporation (NYSE:BE) shares are surging premarket on Monday after the company announced a $5 billion partnership with Brookfield Asset Management Inc. (NYSE:BAM) to implement a reimagined future for AI infrastructure. Brookfield will invest the amount to deploy Bloom's technology, with global AI factory projects underway, including a European site to be announced by year-end. Bloom Energy's fuel cells provide clean, scalable onsite power, while Brookfield brings infrastructure and financing expertise. Together, they aim to transform AI factory design and power. Also Read: Why Bloom Energy's 650% Rally Might Be More Hype Than Reality The collaboration marks the first phase of a joint plan to develop AI factories designed to meet the increasing compute and power requirements of artificial intelligence. With this, the company will become the preferred onsite power provider for Brookfield's global AI factories. The partnership represents Brookfield's first investment under its AI Infrastructure strategy, targeting AI factories, power solutions, compute infrastructure, and strategic capital partnerships, building on its global digital infrastructure experience of over $100 billion. Notably, Bloom Energy has deployed hundreds of megawatts of its fuel cell technology to data centers through partnerships with American Electric Power (NASDAQ:AEP), Equinix (NASDAQ:EQIX), and Oracle (NYSE:ORCL). KR Sridhar, Founder, Chairman, and CEO of Bloom Energy, said, "Unlike traditional factories, AI factories demand massive power, rapid deployment and real-time load responsiveness that legacy grids cannot support. The lean AI factory is achieved with power, infrastructure, and compute designed in sync from day one." Bloom Energy will release its third-quarter 2025 financial results on October 28, 2025. Investors can gain exposure to Bloom Energy via Global X Hydrogen ETF (NASDAQ:HYDR) and ProShares S&P Kensho Cleantech ETF (NYSE:CTEX). Price Action: BE shares were trading higher by 31.79% to $114.00 premarket at last check Monday. Read Next: Plug Power's Sizzling Stock Rally Lights Up These 2 Clean-Energy ETFs Photo by Michael Vi via Shutterstock BEBloom Energy Corp$107.4823.7%OverviewAEPAmerican Electric Power Co Inc$117.070.03%BAMBrookfield Asset Management Ltd$56.652.89%CTEXProShares S&P Kensho Cleantech ETF$32.42-%EQIXEquinix Inc$795.00-0.70%HYDRGlobal X Hydrogen ETF$42.308.71%ORCLOracle Corp$298.131.76%Market News and Data brought to you by Benzinga APIs

Bloom Energy Seals a $5 Billion Partnership With Brookfield to Power AI Factories | The Motley Fool

AI factories -- the large data centers being specially built to support AI training and operations -- require massive amounts of electricity to operate. Ideally, a highly stable, lower-carbon energy source should provide it. Bloom Energy's (BE 26.52%) advanced fuel cell technology provides just what those AI data center operators need -- an ultra-resilient, scalable, and clean onsite solution. The company recently formed a $5 billion partnership with Brookfield Asset Management (BAM 3.45%) to build out AI factories powered by Bloom's fuel cells. Brookfield's management recognizes AI's potential, and believes it will become the most impactful technology in history. As a result, it's seizing on a once-in-a-generation opportunity to help build the digital backbone needed to support the tech. Brookfield projects that total spending on AI infrastructure will surpass $1 trillion this decade and $7 trillion over the next 10 years. This AI infrastructure "must be built like a factory -- with purpose, speed, and scale," stated Bloom Energy founder, Chairman, and CEO KR Sridhar in the press release unveiling the partnership. "Unlike traditional factories, AI factories demand massive power, rapid deployment, and real-time load responsiveness that legacy grids cannot support." Brookfield shares this belief. That is what led the companies to collaborate on reimagining how to build the data centers of the future to power AI at scale. As part of this collaboration, Brookfield will invest up to $5 billion to deploy Bloom Energy's advanced fuel cell technology in AI data centers. Together, the companies will design and deliver AI factories on a global scale, with their first site expected to be in Europe. Foundational models and generative AI will need a massive amount of power in the coming decades. Forecasters estimate that electricity demand from AI data centers in the U.S. alone will surpass 100 gigawatts (GW) by 2035. That's up from a mere 4 GW last year. Providing that power will require an "all of the above" approach that includes traditional energy sources such as new natural gas power plants, additional renewable energy capacity, and innovative solutions like fuel cells. Brookfield is investing heavily in the power side of the equation. It has partnered with institutional investors and its sibling, Brookfield Renewable, to build out a massive global renewable power platform with leading development capabilities. The company currently controls over 46 GW of power-generation capacity, spanning hydro, wind, solar, and battery storage. Additionally, the company has about 230 GW of renewable energy development projects in its pipeline, including 74 GW that are already in advanced stages. These projects will be crucial to supporting the surging power needs of AI. The company is also spending a tremendous amount of capital on the computing power side of things. Brookfield, its institutional partners, and another sibling, Brookfield Infrastructure, are building a global data center platform, investing in two U.S.-based semiconductor fabrication facilities, and investing in related data infrastructure such as fiber networks. Brookfield and its partners have invested over $100 billion into digital infrastructure around the world. The company's investments in data infrastructure have helped drive its power investment thesis. Through the partnership with Bloom Energy, Brookfield can build on these efforts and further capitalize on the opportunity to develop new AI factories. Leveraging expertise in both data center development and power, Brookfield aims to create scalable global solutions and speed the deployment of AI -- without worrying about the limitations of local power grids. Bloom Energy's fuel cells will play an increasingly important role in helping provide AI with the stable power it needs. Its partnership with Brookfield lays the groundwork for what the future of AI data centers could look like, with on-site power provided by fuel cells. It could help drive powerful growth for Bloom Energy and Brookfield in the coming years.

Bloom Energy stock hits all-time high at 105.72 USD By Investing.com

Bloom Energy Corp has reached a significant milestone, with its stock hitting an all-time high of 105.72 USD. This achievement underscores a remarkable period of growth for the company, with InvestingPro data showing a 708.85% return over the past year and an exceptional 392.46% gain in the last six months. The company maintains a healthy financial position with a current ratio of 4.99, indicating strong liquidity. The substantial increase in Bloom Energy's stock price reflects strong investor confidence and the company's robust performance in the energy sector. With revenue growth of 22.72% and an overall Financial Health score rated as GOOD by InvestingPro, which offers 16 additional valuable insights about the company, Bloom Energy continues to demonstrate its market strength. As the company expands its presence, investors seeking detailed analysis can access comprehensive Pro Research Reports, available exclusively through InvestingPro's extensive coverage of over 1,400 US stocks. In other recent news, Bloom Energy has announced a significant $5 billion partnership with Brookfield to develop AI infrastructure using its fuel cell technology. This agreement positions Bloom as the preferred onsite power provider for Brookfield's global AI factories, with a European site announcement expected soon. Additionally, Evercore ISI has initiated coverage of Bloom Energy with an Outperform rating, citing the company's ability to meet current power demands through its versatile fuel-agnostic servers and strong momentum with utilities and AI companies. UBS has reiterated its Buy rating on Bloom Energy, highlighting plans for a Wyoming data center that will utilize the company's solid oxide fuel cells. The facility, filed for approval by BFC Power, is expected to have a capacity of up to 900 MW. RBC Capital has also maintained its Outperform rating, emphasizing the same Wyoming project, which will support a 1.8 GW datacenter developed by Crusoe in partnership with Tallgrass. These developments underscore Bloom Energy's expanding role in AI and power infrastructure projects. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Bloom Energy surges after strategic partnership with Brookfield in energy for AI

Bloom Energy's stock soared nearly 30% on Monday following the announcement of a major agreement with Brookfield, which plans to invest up to $5bn to deploy the American group's fuel cell technology. This partnership marks Brookfield's first significant foray into energy infrastructure dedicated to artificial intelligence. The two companies will build "AI factories" around the world, with the first site planned for Europe by the end of the year. Bloom Energy's fuel cells provide local, off-grid power, a crucial advantage as the energy needs of data centers explode. Bloom is already working with operators such as American Electric Power, Equinix, and Oracle to provide several hundred megawatts of capacity. This announcement comes at a time when the rapid growth of AI is putting pressure on the aging and saturated US power grid, raising fears of price increases for consumers. Behind-the-meter energy solutions are now emerging as a strategic response to the capacity shortfall. For Bloom CEO KR Sridhar, AI infrastructure must be built "like a factory, fast and at scale." Brookfield and Nvidia share this vision: their priority is to accelerate the commissioning of autonomous data centers, capable of operating without relying on the traditional grid, in order to support the global rise of artificial intelligence.