Bloom Energy Shares Plunge 0.09% to 2025 Low Amid AI Energy Scrutiny

Bloom Energy (BE) shares fell 0.09% on Monday, marking the lowest level since July 2025 as the stock declined 2.24% intraday. The move reflects growing scrutiny over the company’s role in addressing energy demands tied to the AI boom, despite its position in decentralized power solutions.

The strategy of buying BE shares after they reached a recent low and holding for one week resulted in no return over the past five years. The strategy had a CAGR of 0.00% and an excess return of -57.85%, significantly underperforming the benchmark return of 57.85%. Additionally, the strategy had a maximum drawdown of 0.00% and volatility of 0.00%, indicating a risk-averse approach but failing to capitalize on broader market gains.

Recent industry trends highlight the intensifying energy consumption driven by AI and hyperscale data centers. With capital expenditures for data centers projected to reach $322 billion in 2025—up from $125 billion in 2021—the sector faces mounting pressure to secure reliable, scalable power sources. Bloom Energy’s focus on onsite energy systems aligns with this shift, but investors remain cautious as tech giants like Google and Meta pursue diversified partnerships with energy providers beyond Bloom’s current partnerships.

The push for localized power generation is accelerating, with data centers expected to increase onsite power adoption from 1% in 2024 to 27% by 2030. While Bloom Energy’s expertise in fuel cells and storage positions it to benefit, competition from solar-battery hybrids and natural gas projects complicates its market positioning. Additionally, regulatory hurdles—such as Amazon’s stalled nuclear-powered data center plans—underscore the risks of overreliance on specific energy models, prompting hyperscalers to prioritize flexible, modular solutions.

Global expansion efforts by tech firms into regions with lower energy costs, including the Gulf and Southeast Asia, introduce new challenges for Bloom Energy. These markets often require tailored regulatory compliance and infrastructure adaptations, areas where Bloom’s experience in integrating solar and storage systems could offer advantages. However, the company’s limited visibility in major hyperscaler partnerships and the sector’s rapid innovation cycle create uncertainty for long-term growth narratives.

Environmental sustainability remains a critical factor, with data centers seeking to reduce carbon footprints. Bloom Energy’s clean energy technologies align with this goal, but the sector’s focus on cost efficiency and scalability means investors will closely monitor the company’s ability to adapt to evolving industry priorities. As AI-driven energy demands continue to surge, Bloom Energy’s stock will likely remain sensitive to broader shifts in energy innovation and regulatory landscapes.