FuelCell Energy to Supply Up to 380 MW Clean Power to Data Centers
FCEL•FuelCell Energy agreed to supply Fit Energy with up to 380 MW of baseload power, initially deploying 30 MW later this year. The deal supports its 500 MW scaling strategy as U.S. data center power demand is forecast to rise from 31 GW in 2025 to 66 GW by 2027.
1. Supply Agreement Details
FuelCell Energy will provide Fit Energy with up to 380 MW of clean baseload power, beginning with an initial 30 MW deployment scheduled for later this year. The company will issue Fit Energy warrants only upon meeting specified deployment milestones that total the full 380 MW capacity.
2. Scaling Strategy
This agreement validates FuelCell's plan to expand its operational capacity to 500 MW, strengthening its ability to serve a growing pipeline of data center clients seeking on-site power solutions. Management cites the deal as a key step in achieving broader market penetration.
3. Data Center Demand Outlook
U.S. data center power demand is projected to more than double from 31 GW in 2025 to 66 GW by 2027, driven by surging AI workloads and a trend toward alternative energy sources. This creates significant potential for clean energy providers.
4. Market Reaction
Following the announcement, FCEL shares jumped 13% in premarket trading, reflecting robust investor confidence. The surge underscores growing optimism about FuelCell's prospects in the expanding AI-driven data center sector.
