Is FuelCell Energy (FCEL) the Next Bloom Energy?

Modern-day artificial intelligence (AI) data centers require a ton of power. The ongoing build-out by hyperscalers could continue to strain the power grid, which is why some lawmakers are requiring technology companies to bring their own power when building new data centers.

As a result, plug-and-play power solutions, such as Bloom Energy’s (BE +12.31%) solid-oxide fuel cells, have become increasingly popular among hyperscalers. Bloom Energy stock has surged, prompting investors to wonder which other companies could help hyperscalers meet their growing energy needs.

FuelCell Energy (FCEL +17.88%) is one company making a pivot to compete for data center contracts. Could it be the next Bloom Energy? Let’s dive into FuelCell’s business and recent moves to find out.

Image source: Getty Images.

Modern data centers require a huge amount of energy

AI data centers are built for high-density parallel computers for training and inference, and require cooling. These data centers rely on specialized graphics processing units (GPUs) that can consume two to four times more energy per chip. Meanwhile, an AI rack could support 60 kilowatts (kW) per rack, compared to traditional data centers that used 5 to 10 kW per rack.

As a result, modern data centers are straining the grid, and many are turning to Bloom Energy Servers, Bloom’s solid-oxide fuel cells, to power their data centers. When Oracle was bringing one of its data centers online last year, Bloom Energy deployed power in 55 days, well ahead of its 90-day timeline. Bloom’s backlog now stands at $20 billion, with $6 billion allocated to its solid-oxide fuel cell products.

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NYSE: BE

Bloom Energy

Today’s Change

(12.31%) $32.14

Current Price

$293.17

Key Data Points

Market Cap

$74B

Day’s Range

$267.98 - $293.17

52wk Range

$17.01 - $302.99

Volume

212K

Avg Vol

11M

Gross Margin

31.08%

FuelCell is pivoting to address data center customers’ growing energy needs

Historically, FuelCell has focused on versatile, “all-in-one” systems that maximize the utility of their carbonate technology. Its “tri-gen” system is a specialized configuration that takes in a single fuel (natural gas or biogas) and produces three separate products: Electricity, hydrogen, and water. This system helps operators cut costs and reduce waste.

In March, FuelCell announced a new offering, a standardized 12.5 megawatt (MW) Power Block specifically built to compete for massive data center contracts. This is a packaged solution made up of 10 1.25 MW modules, with integrated absorption cooling to manage AI thermal loads. These systems can be deployed individually or across data center campuses, and can help data centers address growing power needs in months, not years.

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NASDAQ: FCEL

FuelCell Energy

Today’s Change

(17.88%) $2.45

Current Price

$16.15

Key Data Points

Market Cap

$726M

Day’s Range

$13.10 - $16.25

52wk Range

$3.78 - $16.25

Volume

7M

Avg Vol

3.5M

Gross Margin

-1594.68%

The company’s business development pipeline has increased by an impressive 275% since February 2025, with the majority of this growth driven by data center customers. To meet this growing demand, FuelCell Energy plans to more than triple its production capacity at its Torrington, Connecticut facility, from 100 MW to 350 MW annually.

Data center contracts could open up a new avenue of growth for FuelCell. However, the company’s capacity is more limited than Bloom Energy’s. For example, FuelCell’s current capacity of 100 MW is roughly one-tenth of Bloom Energy’s 1 gigawatt (GW) capacity. While FuelCell aims to increase to 350 MW, Bloom Energy targets a production capacity of 2 GW by the end of this year.

What’s next for FuelCell

The 275% growth in FuelCell’s business pipeline sounds impressive, but these are currently proposals, and not firm orders. In contrast, Bloom has moved past the idea stage and has secured major deals with Oracle, Amazon, American Electric Power, and Brookfield. FuelCell faces execution risk when increasing capacity, including managing supply chain logistics. Any hiccup in its expansion could cause it to miss out on major data center deals if it doesn’t have the capacity to fulfill them.

FuelCell is positioning itself to capitalize on the booming demand for energy from data centers. That said, investors will want to see whether data center operators will sign binding, multi-year contracts with FuelCell as the company looks to prove itself in the data center niche. For these reasons, I think investors should add FuelCell stock to their watch lists and monitor ongoing progress, but I wouldn’t dive in and buy the stock quite yet.