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US hyperscalers are increasingly turning to fuel cell technology to power the rapid expansion of data centers, driven by the need for reliable, on-site electricity as grid constraints threaten to delay AI-related infrastructure projects. According to the energy research firm Rystad Energy, investments in fuel cells for data centers are projected to grow from $2.8 billion in 2025 to approximately $30 billion by 2030. Fuel cells generate electricity through a chemical reaction between oxygen and a fuel—typically natural gas or hydrogen—converting energy directly without combustion. This process results in lower local emissions compared to conventional gas-fired power generation. Industry leaders are utilizing different technologies: Bloom Energy employs solid-oxide technology capable of running on 100% hydrogen, while FuelCell Energy utilizes molten carbonate technology that currently supports up to 40% hydrogen blends. The shift toward on-site power is largely a response to the lengthy timelines required to connect large data centers to the US electrical grid, which Rystad estimates can take between three and six years. By opting for on-site generation, developers aim to bypass these delays. Bloom Energy CEO KR Sridhar noted that the company recently delivered power to an Oracle site in Utah in less than two months and secured planning board approvals for a project with Nebius in New Jersey within three months of signing the contract. Rystad projects that by 2030, roughly 40% of US data center capacity may rely on dedicated on-site power rather than the public grid. Financial performance in the sector reflects this growing demand. Bloom Energy reported a 138% surge in third-quarter revenue to $1.24 billion, with a net profit of $250.3 million compared to a $23.1 million loss in the same period last year. The company has raised its 2026 revenue forecast to between $4.4 billion and $4.6 billion. Oracle has signaled its intent to procure up to 2.8 gigawatts (GW) of Bloom’s systems, with 1.2 GW already under contract. FuelCell Energy is also pivoting toward the data center market, with CEO Jason Few stating that the speed of power deployment has become as critical as the cost. The company expects data centers to represent 75% to 85% of its business within three years, up from its current share of 25% to 30%. Rystad estimates the industry’s total order book at approximately 9 GW, including framework agreements with companies such as AEP, Equinix, and Brookfield, though these agreements do not guarantee firm orders for the full capacity. While Rystad expects annual fuel-cell manufacturing capacity to increase from 1.8 GW to 4 GW by 2030, challenges remain. Bloom Chief Commercial Officer Aman Joshi noted that for large-scale projects, timelines are often dictated by site readiness, permitting, and the availability of supporting infrastructure like transformers and switchgear, rather than the fuel-cell technology itself. The long-term growth of the sector will depend on the ability of suppliers to maintain competitive costs and the ability of developers to secure the necessary fuel and infrastructure for their projects. Article and image source: Indian Express
US hyperscalers are increasingly turning to fuel cell technology to power the rapid expansion of data centers, driven by the need for reliable, on-site electricity as grid constraints threaten to delay AI-related infrastructure projects. According to the energy research firm Rystad Energy, investments in fuel cells for data centers are projected to grow from $2.8 billion in 2025 to approximately $30 billion by 2030. Fuel cells generate electricity through a chemical reaction between oxygen and a fuel—typically natural gas or hydrogen—converting energy directly without combustion. This process results in lower local emissions compared to conventional gas-fired power generation. Industry leaders are utilizing different technologies: Bloom Energy employs solid-oxide technology capable of running on 100% hydrogen, while FuelCell Energy utilizes molten carbonate technology that currently supports up to 40% hydrogen blends. The shift toward on-site power is largely a response to the lengthy timelines required to connect large data centers to the US electrical grid, which Rystad estimates can take between three and six years. By opting for on-site generation, developers aim to bypass these delays. Bloom Energy CEO KR Sridhar noted that the company recently delivered power to an Oracle site in Utah in less than two months and secured planning board approvals for a project with Nebius in New Jersey within three months of signing the contract. Rystad projects that by 2030, roughly 40% of US data center capacity may rely on dedicated on-site power rather than the public grid. Financial performance in the sector reflects this growing demand. Bloom Energy reported a 138% surge in third-quarter revenue to $1.24 billion, with a net profit of $250.3 million compared to a $23.1 million loss in the same period last year. The company has raised its 2026 revenue forecast to between $4.4 billion and $4.6 billion. Oracle has signaled its intent to procure up to 2.8 gigawatts (GW) of Bloom’s systems, with 1.2 GW already under contract. FuelCell Energy is also pivoting toward the data center market, with CEO Jason Few stating that the speed of power deployment has become as critical as the cost. The company expects data centers to represent 75% to 85% of its business within three years, up from its current share of 25% to 30%. Rystad estimates the industry’s total order book at approximately 9 GW, including framework agreements with companies such as AEP, Equinix, and Brookfield, though these agreements do not guarantee firm orders for the full capacity. While Rystad expects annual fuel-cell manufacturing capacity to increase from 1.8 GW to 4 GW by 2030, challenges remain. Bloom Chief Commercial Officer Aman Joshi noted that for large-scale projects, timelines are often dictated by site readiness, permitting, and the availability of supporting infrastructure like transformers and switchgear, rather than the fuel-cell technology itself. The long-term growth of the sector will depend on the ability of suppliers to maintain competitive costs and the ability of developers to secure the necessary fuel and infrastructure for their projects.
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