Beyond Bloom Energy: This Fuel Cell Company Landed a Huge Data Center Deal

As hyperscalers build out artificial intelligence (AI) data centers at a staggering pace, they face a massive bottleneck: a lack of reliable energy.

One of the biggest beneficiaries over the past year is Bloom Energy (NYSE: BE), the fuel cell manufacturer, whose stock has surged more than 1,000% since the start of 2025. The company is seeing incredibly robust demand from data center operators, illustrating a massive opportunity for companies that can quickly address the growing energy needs.

Another company that's made headlines with a data center deal of its own is FuelCell Energy (NASDAQ: FCEL). The company could be the next big winner as demand for power surges, but investors should know a few things before buying the stock.

FuelCell's recent data center deal is an important first step

Solid oxide fuel cells have emerged as a popular option to quickly meet energy needs. These fuel cells provide continuous baseload energy using natural gas and, down the road, other lower-carbon fuels like hydrogen and biogas. In addition, fuel cells can support microgrids and boost energy resilience by dynamically adjusting their output to complement intermittent renewables such as wind and solar.

FuelCell Energy has spent decades developing molten carbonate fuel cell systems to deliver continuous, low-emissions electricity for customers, but has struggled to translate that into commercial success. Sales have been uneven and volatile amid extended development cycles, while profitability is constrained by the capital-intensive nature of manufacturing.

That said, AI workloads are driving unprecedented electricity demand, and power grid bottlenecks create a need for alternative sources. FuelCell Energy's distributed generation systems can provide continuous, on-site baseload electricity directly to hyperscalers, bypassing utility infrastructure.

Image source: Getty Images.

FuelCell Energy recently entered an agreement with Fit Energy, marking a huge milestone for the fuel cell developer. As part of the agreement, Fit Energy will purchase up to 380 megawatts of carbonate fuel cell systems for data centers across four phases.

One thing to bear in mind is that only the initial 30 MW phase is committed, with deliveries expected by the end of this year. The remainder consists of options that Fit Energy may elect to pursue in increments, with milestone-based deposits required before each phase becomes effective.

Is FuelCell stock a buy?

FuelCell's agreement with Fit Energy is an important first step in validating its technology and could serve as a roadmap for future deals. With that said, the company will need to ramp up capacity and prove it can meet these demands, much like Bloom Energy did when it delivered on-site power to Oracle in only 55 days one year ago.

FCEL Net Income (TTM) data by YCharts

Before purchasing FuelCell stock, it's important to understand its current financial situation. Over the past 12 months, FuelCell has lost nearly $225 million. Meanwhile, over the past three years, the company's outstanding shares have increased from 14.8 million to 63.5 million as it has struggled with high cash burn. The company recently announced it would raise another $225 million in equity to expand its manufacturing capacity.

Given its cash burn and shareholder dilution over the years, FuelCell remains a high-risk, high-reward stock that needs to prove it can deliver to data center customers before most investors should consider buying.

Courtney Carlsen has positions in Bloom Energy and FuelCell Energy. The Motley Fool has positions in and recommends Bloom Energy. The Motley Fool has a disclosure policy.