Bloom Energy's New Power Connect System Could Cut Installation Time by Over 40%. Here's Why That Matters More Than the Backlog.

Bloom Energy (NYSE: BE), a developer of solid oxide fuel cells (SOFCs), has been one of the market's hottest growth stocks. Its shares surged more than 2,500% over the past two years, while its backlog swelled to $20 billion at the end of 2025. That's ten times the $2.0 billion in revenue it generated in 2025. Analysts expect its revenue to more than double to $4.1 billion this year, then grow 65% to $6.8 billion in 2027 and 46% to $9.9 billion in 2028.

That growth trajectory is impressive, but the recent introduction of its Power Connect system -- which could reduce its on-site installation time by more than 40% -- could help it exceed those bullish estimates. Let's see why this upgrade could matter more than the size of its backlog.

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Why will the Power Connect systems boost Bloom's sales?

Bloom's SOFCs can convert natural gas, biogas, propane, and hydrogen into electricity without any combustion. Its systems can also be deployed on-site in less than three months and bypass traditional electrical grids, which can require years to set up new connections.

Those advantages make SOFC systems a popular choice for data centers seeking to quickly expand their cloud and AI infrastructure while maintaining a smaller carbon footprint. Oracle, CoreWeave, Nebius, Equinix, and other data center giants already use its SOFC systems. Brookfield Asset Management (NYSE: BAM), one of the world's largest asset managers, funds Bloom's development and deployment of those SOFC systems via a $25 billion partnership.

Bloom's new Power Connect systems shift the complex wiring and integration work from the field into its own factories. By pre-wiring, pre-connecting, and fully testing those systems before they're delivered, Bloom minimizes the need for local on-site electricians and accelerates system deployments. By reducing its installation times to just one to two months, Bloom will reinforce its early mover advantage and widen its moat against potential challengers.

Bloom isn't the only SOFC maker, but it dominates the market for stationary, multi-megawatt, and utility-scale deployments. The AI market's expansion will generate strong tailwinds for that business as more data centers deploy Bloom's SOFC systems to meet their energy needs.

With a market cap of $79 billion, Bloom's stock isn't cheap at 19 times this year's sales. However, its dominance of the SOFC market, massive backlog, and Power Connect upgrade could all justify that premium valuation and attract more growth-oriented investors.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy, Brookfield Asset Management, Equinix, and Oracle. The Motley Fool has a disclosure policy.