Bloom Energy Says Its Fuel Cells Can Save a Big AI Data Center $3.6 Billion. I'd Still Wait to Buy the Stock.

Bloom Energy (NYSE:BE) put a dollar amount on its pitch to artificial intelligence (AI) data centers on Sept. 16. According to the fuel cell maker's own cost model, a 1-gigawatt AI data center run on its systems could spend $3.6 billion (27%) less on non-chip construction than one built around standard AC (alternating current) power. Over five years, Bloom says the total cost to own the facility drops by $5.5 billion, or 9%.

These savings are big next to the $3.9 billion to $4.2 billion in revenue Bloom sees for all of 2026. And they come with the stock near $289 as of this writing, about 18% under its 52-week high of $351.28.

I think the claim's credible, but I'm less sure it affects what the stock's worth.

Image source: The Motley Fool.

Where does the $3.6 billion come from?

Bloom's solid oxide fuel cells make electricity on-site, and they produce it as 800-volt direct current (DC). That matters because AI chips use DC, but the grid, gas turbines and engines supply AC power that has to be converted before it reaches a server rack. Skipping these steps, Bloom argues, reduces the need for transformers and switchgear, equipment that can already take years to get.

Work the percentages backward, and Bloom's model puts non-chip construction for a 1-gigawatt site at about $13 billion and five-year ownership at roughly $60 billion. Most of that tab, in other words, goes toward the chips and the cost to run them. Even in Bloom's own numbers, power savings trim less than a tenth of it.

Bloom also notes that real project economics will differ by site.

Nvidia's racks are moving to 800 volts

Nvidia (NASDAQ:NVDA) has said full-scale production of 800-volt DC data centers should coincide with its Kyber rack systems in 2027. It says running one of these 1-megawatt racks on today's 54 volts could use up to 200 kilograms of copper. Research firm SemiAnalysis reported in July that Kyber could slip to 2028, a report Nvidia denied.

But Nvidia's own design doesn't need a fuel cell. It converts AC grid power to 800-volt DC once, at the edge of the data center.

The data center power system makers Nvidia listed as 800-volt partners in October 2025 included Eaton and GE Vernova, but not Bloom. So Bloom's real competitor in 2027 might be grid or turbine power converted to DC once, which could cut the savings.

"To move away from the AC paradigm that is over a century old requires the pain of not switching to be far greater than the benefit and comfort of accepting the status quo," Bloom's founder and CEO, KR Sridhar, said when the report came out, admitting that switching is a high bar.

Saving 9% on ownership costs is worth having. I'm not sure it's that sort of pain.

Orders still depend on speed

Bloom's Oracle deal seems to have been won on something else. When Oracle expanded its partnership in April to get up to 2.8 gigawatts of Bloom's fuel cells, its executive spoke about speed, not cost.

"By rapidly deploying Bloom's reliable, efficient fuel cell energy, we are quickly meeting the demands of our customers across the United States," said Mahesh Thiagarajan, executive vice president of Oracle Cloud Infrastructure.

That demand shows in Bloom's results. In the second quarter of 2026, product revenue was around $935 million, over three times the year-ago level. Product gross margin, though, is about where it was before the data center boom. The latest quarter's 36.5% is near the 36.6% Bloom reported in the fourth quarter of 2025 and the 36.8% it posted for all of 2024. So Bloom is selling far more systems without yet keeping a noticeably bigger share of every sale. If customers accept the cost claim, it may give Bloom room to charge more.

Of course, fuel cells also need a steady gas supply. On Sept. 24, Bloomberg reported that Oracle had sent a force majeure notice linked to Project Jupiter, a planned New Mexico campus that Bloom's fuel cells are due to power. The pipeline meant to supply the site with natural gas has been delayed. Bloom said Oracle is still committed to the contract, and Oracle said the project remains on schedule.

Shares cost around 56 times Bloom's expected 2027 earnings per share. And 2027 is just the year Nvidia's 800-volt racks are set to start arriving. Notably, Bloom's announcement doesn't name a customer for its full 800-volt design.

So the cost claim helps Bloom's case for the 2027 build-out. But I'd want to see a big data center operator commit to that design before paying this much for the stock.

Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy, Eaton Plc, GE Vernova, Nvidia, and Oracle. The Motley Fool has a disclosure policy.