From Yahoo Finance: 2025-05-11 18:05:00

Electricity demand from AI data centers is set to surge by 300% in the next decade, posing a challenge for utilities. Bloom Energy is poised to step in and rapidly provide the necessary power. The company’s hydrogen fuel cells can be easily deployed to meet immediate power needs, offering a solution for the growing demand.

The growth in AI systems will require a significant increase in electricity, benefiting electric utilities. However, utilities face challenges in meeting the demand quickly due to regulatory approvals and infrastructure buildout timelines. Bloom Energy’s fuel cells offer a solution for AI companies needing immediate power, with a recent deal signed with American Electric Power to support data center demand.

While utilities anticipate long-term growth from the increasing electricity demand, Bloom Energy faces profitability challenges as a newcomer in the power sector. Conservative investors may hesitate, but the company’s ability to provide timely power to the rapidly growing AI industry positions it well for future success. The company’s fuel cells, which can be easily relocated, have generated significant demand, with service contracts contributing to a substantial backlog.

Read more: AI Data Center Demand Is Growing Too Fast. That’s an Opportunity for Bloom Energy.