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Is FCEL Better Positioned Than OKLO for Data Center Power?
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Key Takeaways
FCEL promotes deployable fuel cell systems as fast, modular solutions for growing AI power demand.
A 450 MW LOI and flexible fuel options highlight FCEL's alignment with data center.
OKLO's META-backed nuclear project targets 2030 , underscoring long timelines and regulatory hurdles.
The rapid expansion of artificial intelligence (AI) and cloud computing is reshaping how data centers think about power. Reliability, speed of deployment, and proximity to load are becoming just as important as long-term cost and sustainability. Against this backdrop, FuelCell Energy (FCEL - Free Report) and Oklo Inc. (OKLO - Free Report) represent two very different approaches to meeting next-generation power demand: one focused on deployable, modular systems today, the other on advanced nuclear reactors years away from commercialization.
Both companies have attracted investor attention as data centers look beyond the traditional grid. However, differences in technology readiness, execution timelines, and financial profiles are creating a widening gap in near-term positioning.
FCEL: Deployable Power for Immediate Demand
FuelCell Energy is positioning its carbonate fuel cell systems as a practical solution for data centers facing grid constraints and long interconnection delays. Management highlights that electricity demand from AI and cloud workloads is growing faster than utilities can expand transmission and generation capacity. In response, FCEL emphasizes behind-the-meter power that can be installed in months rather than years.
The company’s modular 1.25-megawatt (MW) fuel cell platforms allow customers to scale capacity incrementally as demand grows. These systems provide continuous baseload power, operate quietly, and produce very low emissions, which can ease permitting in dense or regulated areas. Fuel flexibility also adds appeal, as the units can run on natural gas, renewable gas, or hydrogen blends while capturing waste heat to improve overall efficiency.
FCEL has also taken steps to address the financing and execution challenges associated with large data center projects. A non-binding letter of intent with Sustainable Development Capital to explore up to 450 MW of deployments globally highlights growing interest in its technology. While these discussions have not yet translated into signed contracts, they point to tangible near-term opportunities tied directly to data center growth.
OKLO represents a more speculative approach to powering future data centers through advanced nuclear reactors. The company received a major credibility boost after announcing an agreement with Meta Platforms (META) to develop a 1.2-gigawatt advanced nuclear campus in Ohio to support data center and AI infrastructure.
The META agreement includes a prepayment mechanism that provides upfront funding for early development and fuel procurement, reducing some financing uncertainty. Pre-construction activities are expected to begin in 2026, with the first phase potentially operational around 2030 and full delivery targeted by 2034.
Despite this validation, OKLO remains pre-revenue, with no commercial reactors built or operating today. Its timeline underscores the long-dated nature of nuclear development, involving regulatory approvals, construction risk, and significant capital requirements. As a result, investor sentiment around OKLO has been highly volatile, swinging sharply on news flow rather than fundamentals.
Price Performance: Momentum Versus Volatility
FCEL shares have been volatile but directionally stronger in recent months. Over the past six months, the stock has been up more than 80%, rebounding from below $4 to around $9.50, although it still trades about 20% below its October highs. Over the past three months, FCEL is up roughly 17%, reflecting renewed interest tied to data center power demand but lingering skepticism about execution.
OKLO’s price action has been far more sentiment-driven. Shares surged more than 45% following news of the META agreement, then pulled back about 10% shortly afterward. While the stock is still up roughly 150% over the past year, it is down over 40% over the last three months, underscoring wide swings tied to its early-stage profile.
Image Source: Zacks Investment Research
Valuation Comparison
From a valuation standpoint, the contrast is stark. OKLO has traded around 11 times book value despite having no commercial revenues, reflecting elevated expectations for long-term success and leaving little margin for delays or execution setbacks.
FuelCell Energy, while still unprofitable, trades at a price-to-book ratio of less than 1, anchoring its valuation to an operating business with active manufacturing, existing deployments, and ongoing customer discussions. The market is balancing dilution risk and execution challenges against FCEL’s nearer-term relevance to data center infrastructure and its ability to convert demand into revenues sooner.
Image Source: Zacks Investment Research
EPS Trends
OKLO’s earnings outlook remains deeply negative, with losses expected to widen before narrowing later in the decade as licensing and construction milestones are reached. The company has missed the Zacks Consensus Estimate in three of the last four quarters, with an average miss of about 20%, reinforcing execution risk.
Image Source: Zacks Investment Research
In contrast, FuelCell Energy’s earnings trajectory has been gradually improving. Estimates for the current fiscal year and beyond have moved in a more favorable direction, and the company has delivered better-than-expected results in recent quarters. While profitability remains a longer-term goal, the trend suggests stabilizing execution.
Image Source: Zacks Investment Research
Conclusion
For the long term, OKLO’s advanced nuclear technology offers meaningful optionality as data centers seek massive amounts of clean, firm power. However, that potential sits years away and comes with significant regulatory, construction and execution risk. FuelCell Energy, by comparison, aligns more closely with the immediate needs of data center operators looking for fast, modular, on-site solutions.
At present, FCEL’s improving execution signals, deployable technology, and closer link to near-term data center growth support a more favorable outlook. FuelCell Energy carries a Zacks Rank #3 (Hold) and stands in a better position than OKLO, which has a Zacks Rank #5 (Strong Sell), reflecting the market’s preference for nearer-term visibility over long-dated promise right now. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Is FCEL Better Positioned Than OKLO for Data Center Power?
Key Takeaways
The rapid expansion of artificial intelligence (AI) and cloud computing is reshaping how data centers think about power. Reliability, speed of deployment, and proximity to load are becoming just as important as long-term cost and sustainability. Against this backdrop, FuelCell Energy (FCEL - Free Report) and Oklo Inc. (OKLO - Free Report) represent two very different approaches to meeting next-generation power demand: one focused on deployable, modular systems today, the other on advanced nuclear reactors years away from commercialization.
Both companies have attracted investor attention as data centers look beyond the traditional grid. However, differences in technology readiness, execution timelines, and financial profiles are creating a widening gap in near-term positioning.
FCEL: Deployable Power for Immediate Demand
FuelCell Energy is positioning its carbonate fuel cell systems as a practical solution for data centers facing grid constraints and long interconnection delays. Management highlights that electricity demand from AI and cloud workloads is growing faster than utilities can expand transmission and generation capacity. In response, FCEL emphasizes behind-the-meter power that can be installed in months rather than years.
The company’s modular 1.25-megawatt (MW) fuel cell platforms allow customers to scale capacity incrementally as demand grows. These systems provide continuous baseload power, operate quietly, and produce very low emissions, which can ease permitting in dense or regulated areas. Fuel flexibility also adds appeal, as the units can run on natural gas, renewable gas, or hydrogen blends while capturing waste heat to improve overall efficiency.
FCEL has also taken steps to address the financing and execution challenges associated with large data center projects. A non-binding letter of intent with Sustainable Development Capital to explore up to 450 MW of deployments globally highlights growing interest in its technology. While these discussions have not yet translated into signed contracts, they point to tangible near-term opportunities tied directly to data center growth.
OKLO: Long-Term Nuclear Promise, Near-Term Uncertainty
OKLO represents a more speculative approach to powering future data centers through advanced nuclear reactors. The company received a major credibility boost after announcing an agreement with Meta Platforms (META) to develop a 1.2-gigawatt advanced nuclear campus in Ohio to support data center and AI infrastructure.
The META agreement includes a prepayment mechanism that provides upfront funding for early development and fuel procurement, reducing some financing uncertainty. Pre-construction activities are expected to begin in 2026, with the first phase potentially operational around 2030 and full delivery targeted by 2034.
Despite this validation, OKLO remains pre-revenue, with no commercial reactors built or operating today. Its timeline underscores the long-dated nature of nuclear development, involving regulatory approvals, construction risk, and significant capital requirements. As a result, investor sentiment around OKLO has been highly volatile, swinging sharply on news flow rather than fundamentals.
Price Performance: Momentum Versus Volatility
FCEL shares have been volatile but directionally stronger in recent months. Over the past six months, the stock has been up more than 80%, rebounding from below $4 to around $9.50, although it still trades about 20% below its October highs. Over the past three months, FCEL is up roughly 17%, reflecting renewed interest tied to data center power demand but lingering skepticism about execution.
OKLO’s price action has been far more sentiment-driven. Shares surged more than 45% following news of the META agreement, then pulled back about 10% shortly afterward. While the stock is still up roughly 150% over the past year, it is down over 40% over the last three months, underscoring wide swings tied to its early-stage profile.
Valuation Comparison
From a valuation standpoint, the contrast is stark. OKLO has traded around 11 times book value despite having no commercial revenues, reflecting elevated expectations for long-term success and leaving little margin for delays or execution setbacks.
FuelCell Energy, while still unprofitable, trades at a price-to-book ratio of less than 1, anchoring its valuation to an operating business with active manufacturing, existing deployments, and ongoing customer discussions. The market is balancing dilution risk and execution challenges against FCEL’s nearer-term relevance to data center infrastructure and its ability to convert demand into revenues sooner.
EPS Trends
OKLO’s earnings outlook remains deeply negative, with losses expected to widen before narrowing later in the decade as licensing and construction milestones are reached. The company has missed the Zacks Consensus Estimate in three of the last four quarters, with an average miss of about 20%, reinforcing execution risk.
In contrast, FuelCell Energy’s earnings trajectory has been gradually improving. Estimates for the current fiscal year and beyond have moved in a more favorable direction, and the company has delivered better-than-expected results in recent quarters. While profitability remains a longer-term goal, the trend suggests stabilizing execution.
Conclusion
For the long term, OKLO’s advanced nuclear technology offers meaningful optionality as data centers seek massive amounts of clean, firm power. However, that potential sits years away and comes with significant regulatory, construction and execution risk. FuelCell Energy, by comparison, aligns more closely with the immediate needs of data center operators looking for fast, modular, on-site solutions.
At present, FCEL’s improving execution signals, deployable technology, and closer link to near-term data center growth support a more favorable outlook. FuelCell Energy carries a Zacks Rank #3 (Hold) and stands in a better position than OKLO, which has a Zacks Rank #5 (Strong Sell), reflecting the market’s preference for nearer-term visibility over long-dated promise right now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.