US hyperscalers are increasingly adopting fuel cells as grid constraints hinder efforts to secure fast, reliable electricity for AI data centers. Rystad Energy forecasts that investment in fuel cells for data centers will increase from $2.8 billion in 2025 to about $30 billion by 2030. Data centers need large, dependable electricity supplies to operate computing equipment and cooling continuously. Rystad estimates that connecting large electricity loads to the US grid takes three to six years, encouraging developers to consider on-site generation.
Fuel cells convert energy directly into electricity through a chemical reaction involving oxygen and a fuel such as natural gas or hydrogen, rather than combustion. Bloom Energy uses solid-oxide technology capable of operating on 100% pure hydrogen. FuelCell Energy uses molten carbonate technology limited to blends containing 40% hydrogen. Both companies' systems can use different fuels. Fuel cells generate fewer local emissions than conventional gas-fired generation because combustion does not occur inside the stack.
Bloom CEO KR Sridhar said on Thursday's post-earnings call that Bloom delivered electricity to Oracle's Utah site less than two months after announcing the companies' first project. Sridhar said Bloom was achieving a similar result with Nebius in New Jersey. Sridhar said Bloom obtained planning board approvals for the fuel cells within three months after signing the contract. Rystad predicts that about 40% of projected US data-center capacity in 2030 could seek dedicated on-site generation instead of depending exclusively on the grid.
Bloom's third-quarter revenue increased 138% to $1.24 billion. Bloom recorded a net profit of $250.3 million, against a loss of $23.1 million a year earlier. Bloom increased the company's 2026 revenue forecast to between $4.4 billion and $4.6 billion. Oracle, a US cloud computing company, plans to procure up to 2.8 gigawatts of Bloom fuel-cell systems. Oracle has contracted for 1.2 gigawatts of that capacity.
FuelCell Energy is also pursuing data-center customers. FuelCell Energy CEO Jason Few said the time needed to obtain electricity has become as important as electricity costs. FuelCell Energy expects data centers and related business to represent 75% to 85% of the company's business within two to three years, against 25% to 30% currently. Rystad estimates that the industry's order book totals roughly 9 gigawatts, including framework agreements involving Oracle, AEP, Equinix and Brookfield. Such agreements do not necessarily constitute firm orders for their entire stated capacity.
Rystad expects annual fuel-cell manufacturing capacity to increase from about 1.8 gigawatts currently to 4 gigawatts by 2030. Bloom Chief Commercial Officer Aman Joshi said site readiness, permitting and supporting infrastructure typically determine timelines most for projects exceeding 100 megawatts, rather than fuel-cell technology. Projects still require gas connections, permits, transformers and switchgear, which can delay deployment.
Fuel cells can supplement grid electricity while competing against other technologies for on-site generation. Growth depends on suppliers delivering systems at competitive costs and developers successfully building projects and securing fuel.
Fuel-Cell Demand Surges for AI Data Centers, Investment to Hit $30B by 2030
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Summary
Fuel-cell demand is rising for AI data centers, with investment expected to hit $30 billion by 2030, according to Rystad Energy. US hyperscalers are turning to fuel cells to manage grid limitations. Bloom Energy reported Q3 revenue of $1.24 billion, up 138%, and a net profit of $250.3 million. Oracle has ordered 1.2 gigawatts of Bloom systems, part of a 2.8 gigawatt plan. Altcoins to watch may benefit from positive inflation data and energy-sector growth.
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