Bloom Energy CEO positions fuel-cell tech as solution to NIMBY resistance, arguing distributed power reduces siting friction.

Mounting local opposition to data center construction is creating a business opportunity for Bloom Energy Corp., according to its chief executive officer, who positions the company's fuel cells as a cleaner, quieter alternative to conventional power-generating systems.

"Rationally, our deployment should not be a community issue," Chief Executive Officer KR Sridhar said in an interview with Bloomberg News in San Francisco. "It's a business opportunity right now because nobody else is community friendly." Bloom's shares have risen more than 200% since the start of the year, driven by investor enthusiasm over demand for its technology to power data centers.

Bloom's fuel cells generate electricity from natural gas through a chemical reaction rather than burning the fuel. The company says they require little water and generate less air pollution and noise compared to gas turbines—key advantages in gaining acceptance from local communities increasingly hostile to data center projects over environmental and economic concerns.

"The national backlash is very real. You're seeing local communities come and push back a lot," Sridhar said. "Which of us wants a power plant in our backyard?"

Two recent deals illustrate this trend. Oracle Corp. initially planned to power its Project Jupiter data center campus in New Mexico with conventional gas turbines from Siemens Energy AG. The project faced intense local protests centered on environmental concerns until Oracle announced in April that it would instead use Bloom systems to power the site. Similarly, Dutch-owned AI cloud provider Nebius Group NV. opted to replace its planned gas turbines with Bloom's technology, citing the company's fast delivery time and "clean, virtually non-polluting technology."

For one of Bloom's largest projects, the company is supplying 2.5 gigawatts of capacity to power the Oracle facility in New Mexico. Sridhar said Bloom has spent time in the state meeting with locals and explaining its technology, adding that some have been persuaded, including a local newspaper that had initially opposed the Oracle project.

Still, challenges remain. "Nothing is NIMBY-proof," Sridhar said, "because NIMBY-ism is not rational."