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How FuelCell Energy Solves Data Center Power Bottlenecks
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Key Takeaways
FCEL offers behind-the-meter fuel cells to meet rising data center power needs without grid delays.
Modular 1.25-MW systems scale quickly and operate near data centers with limited space or access.
Fuel cells run quietly with low emissions, boosting uptime and easing permitting in strict regions.
FuelCell Energy (FCEL - Free Report) is promoting its carbonate fuel cell technology as a practical response to a growing challenge in data center development: electricity demand is rising faster than what grid capacity can be built. The company points to AI and cloud computing as key drivers, since these workloads need steady, high-density power that many utilities cannot supply quickly. New grid connections, substations, or large turbines often face long delays, making reliable access to power a real risk for large and smaller data center operators alike.
In this context, FuelCell Energy positions behind-the-meter generation as a faster way to secure power. Its modular fuel cell systems can be installed in months rather than years and can run independently of the grid, helping projects avoid utility bottlenecks. Using 1.25-megawatt modules, FCEL’s systems can scale as demand increases and be placed close to data centers, where space and power access are limited. This reduces reliance on slow grid upgrades, turbine procurement, and complex permitting.
From an operational standpoint, the company highlights features suited for mission-critical data centers. The fuel cells deliver continuous baseload power, can operate independently if the grid goes down, and ramp up output to meet changing demand. Quiet operation and very low emissions can ease permitting, especially in areas with strict air rules. The systems can run on natural gas, renewable gas, or gas-hydrogen blends, and also capture heat to improve efficiency. Together, these attributes support FuelCell Energy’s focus on data centers as a key growth opportunity.
Onsite Power Solutions Gain Traction in Data Centers
Bloom Energy (BE - Free Report) is strongly focused on data centers, which it highlights as its largest and fastest-growing market segment. The company addresses rising AI-driven power demand by providing reliable, onsite fuel cell power that does not rely on strained grids. Bloom Energy’s solutions offer high reliability, fast deployment, and scalability, making it well-suited for hyperscale and colocation data centers worldwide.
Meanwhile, Enphase Energy (ENPH - Free Report) is gradually positioning itself to benefit from data center power needs by expanding into commercial and three-phase energy solutions. ENPH’s IQ9 microinverters support 480V three-phase systems, which are commonly used in data-intensive facilities, while Enphase Energy’s planned small commercial batteries enable load shifting and backup power for high-uptime users. Together, these offerings allow Enphase Energy to support reliable, efficient, and scalable clean energy use in data-center-like environments.
The Zacks Rundown on FCEL
Shares of FuelCell Energy have gained 50% over the past six months, breezing past the industry's growth.
Image Source: Zacks Investment Research
FCEL currently has an average brokerage recommendation (ABR) of 3.22 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by nine brokerage firms.
Image Source: Zacks Investment Research
The chart below shows FCEL’s earnings surprise over the past four quarters.
Image: Bigstock
How FuelCell Energy Solves Data Center Power Bottlenecks
Key Takeaways
FuelCell Energy (FCEL - Free Report) is promoting its carbonate fuel cell technology as a practical response to a growing challenge in data center development: electricity demand is rising faster than what grid capacity can be built. The company points to AI and cloud computing as key drivers, since these workloads need steady, high-density power that many utilities cannot supply quickly. New grid connections, substations, or large turbines often face long delays, making reliable access to power a real risk for large and smaller data center operators alike.
In this context, FuelCell Energy positions behind-the-meter generation as a faster way to secure power. Its modular fuel cell systems can be installed in months rather than years and can run independently of the grid, helping projects avoid utility bottlenecks. Using 1.25-megawatt modules, FCEL’s systems can scale as demand increases and be placed close to data centers, where space and power access are limited. This reduces reliance on slow grid upgrades, turbine procurement, and complex permitting.
From an operational standpoint, the company highlights features suited for mission-critical data centers. The fuel cells deliver continuous baseload power, can operate independently if the grid goes down, and ramp up output to meet changing demand. Quiet operation and very low emissions can ease permitting, especially in areas with strict air rules. The systems can run on natural gas, renewable gas, or gas-hydrogen blends, and also capture heat to improve efficiency. Together, these attributes support FuelCell Energy’s focus on data centers as a key growth opportunity.
Onsite Power Solutions Gain Traction in Data Centers
Bloom Energy (BE - Free Report) is strongly focused on data centers, which it highlights as its largest and fastest-growing market segment. The company addresses rising AI-driven power demand by providing reliable, onsite fuel cell power that does not rely on strained grids. Bloom Energy’s solutions offer high reliability, fast deployment, and scalability, making it well-suited for hyperscale and colocation data centers worldwide.
Meanwhile, Enphase Energy (ENPH - Free Report) is gradually positioning itself to benefit from data center power needs by expanding into commercial and three-phase energy solutions. ENPH’s IQ9 microinverters support 480V three-phase systems, which are commonly used in data-intensive facilities, while Enphase Energy’s planned small commercial batteries enable load shifting and backup power for high-uptime users. Together, these offerings allow Enphase Energy to support reliable, efficient, and scalable clean energy use in data-center-like environments.
The Zacks Rundown on FCEL
Shares of FuelCell Energy have gained 50% over the past six months, breezing past the industry's growth.
FCEL currently has an average brokerage recommendation (ABR) of 3.22 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by nine brokerage firms.
The chart below shows FCEL’s earnings surprise over the past four quarters.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.