A fuel cell company beyond Bloom Energy landed a major data center power deal, signaling growing diversification of alternative power technologies for AI infrastructure.
As hyperscalers build out artificial intelligence data centers at a staggering pace, they face a massive bottleneck: a lack of reliable energy. Bloom Energy (NYSE: BE), the fuel cell manufacturer, has been one of the biggest beneficiaries over the past year, with its stock surging more than 1,000% since the start of 2025. The company is experiencing incredibly robust demand from data center operators, illustrating a massive opportunity for companies that can quickly address growing energy needs.
Another company making headlines with its own data center deal is FuelCell Energy (NASDAQ: FCEL). The company could be the next big winner as demand for power surges, though investors should understand several key factors before buying the stock.
Solid oxide fuel cells have emerged as a popular option to quickly meet energy needs. These fuel cells provide continuous baseload energy using natural gas and, down the road, other lower-carbon fuels like hydrogen and biogas. Fuel cells can also support microgrids and boost energy resilience by dynamically adjusting their output to complement intermittent renewables such as wind and solar.
FuelCell Energy has spent decades developing molten carbonate fuel cell systems to deliver continuous, low-emissions electricity for customers, but has struggled to translate that into commercial success. Sales have been uneven and volatile amid extended development cycles, while profitability is constrained by the capital-intensive nature of manufacturing.
AI workloads are now driving unprecedented electricity demand, and power grid bottlenecks create a need for alternative energy sources. FuelCell Energy's distributed generation systems can provide continuous, on-site baseload electricity directly to hyperscalers, bypassing utility infrastructure.
FuelCell Energy recently entered an agreement with Fit Energy, marking a major milestone for the fuel cell developer. Under this agreement, Fit Energy will purchase up to 380 megawatts of carbonate fuel cell systems for data centers across four phases. However, only the initial 30 MW phase is committed, with deliveries expected by the end of 2026. The remainder consists of options that Fit Energy may elect to pursue in increments, with milestone-based deposits required before each phase becomes effective.
FuelCell's agreement with Fit Energy is an important first step in validating its technology and could serve as a roadmap for future deals. The company will need to ramp up capacity and prove it can meet these demands, much as Bloom Energy did when it delivered on-site power to Oracle in only 55 days one year ago.
Before purchasing FuelCell stock, investors should understand its current financial situation. Over the past 12 months, FuelCell has lost nearly $225 million. Over the past three years, the company's outstanding shares have increased from 14.8 million to 63.5 million as it has struggled with high cash burn. The company recently announced it would raise another $225 million in equity to expand its manufacturing capacity. Given its cash burn and shareholder dilution over the years, FuelCell remains a high-risk, high-reward stock that needs to prove it can deliver to data center customers before most investors should consider buying.