On-site power and investment outlook
Major US data center developers are expanding their adoption of fuel cells to secure the electricity needed to expand artificial intelligence (AI) infrastructure. With grid connections taking years, they are seeking to bring forward electricity supply by installing their own on-site generation facilities. A forecast also projects related investment reaching $30 billion in 2030.
According to Bloomberg on October 23, energy research firm Rystad Energy expects investment in fuel cells for data centers to increase from $2.8 billion in 2025 to about $30 billion in 2030. Rystad Energy estimated that connecting large electricity loads to the US grid could take 3 to 6 years.
AI data centers need substantial, reliable electricity supplies because computing equipment and cooling systems must operate 24 hours a day. Fuel cells convert chemical energy from sources such as natural gas or hydrogen into electricity, with the advantage of generating power directly on site.
Supplier results and orders
Bloom Energy, considered one of the leading beneficiaries, recorded third-quarter revenue of $1.24 billion, up 138% from a year earlier. Net income was $250.3 million, a return to profitability from a net loss of $23.1 million a year earlier. The company raised its 2026 revenue guidance to $4.4 billion to $4.6 billion.
Bloom Energy CEO Sridhar said the company began supplying electricity at a Utah site less than two months after announcing its first project with Oracle. Sridhar also said the company obtained fuel cell permit approvals for the Nebius project in New Jersey within 3 months of signing the contract.
Oracle plans to procure up to 2.8 gigawatts (GW) of Bloom Energy fuel cell systems, of which 1.2GW is already under contract. Rystad Energy estimated the industry's order backlog, including Oracle, AEP, Equinix and Brookfield, at about 9GW. However, it added that framework agreements do not represent firm orders for their full capacity.
Competitor FuelCell Energy is also pursuing an expansion of its data center business. CEO Few said that time to power had become important alongside electricity costs. The company expects data centers and related activities to account for 75% to 85% of its overall business within the next 2 to 3 years, compared with about 25% to 30% currently.
Capacity and project constraints
However, market growth faces practical constraints. Rystad Energy expects annual fuel cell manufacturing capacity to expand from about 1.8GW currently to 4GW in 2030. But large projects also depend on site preparation, permitting, gas connections and the construction of electrical facilities, not just equipment supply.
Fuel cells are expected to serve as a way to supplement grid electricity and bring data centers into operation sooner, rather than replace the grid entirely. The analysis is that the pace of future market expansion will depend on whether suppliers can deliver equipment on time at competitive costs and whether developers can build projects and secure reliable fuel supplies.
Original Korean article: digitaltoday.co.kr
English brief by Korea Wind Intelligence, koreawindintel.com
