FCEL Targets AI Data Centers With DC Power and Carbon Capture

FuelCell Energy FCEL is targeting AI data centers with its carbonate fuel cells, which can supply power directly in DC form. The company highlights an 800-volt DC setup that can connect to facility power systems or be placed close to AI server racks. It also offers a 13.8-kilovolt AC option for powering an entire site. According to the company, fewer power-conversion steps can improve efficiency, lower installation costs, and increase reliability as data center power demand grows.

Cooling is another key part of the strategy. FuelCell Energy says the heat produced by its fuel cells can be reused to power absorption chillers, which help cool data centers and reduce the electricity needed for cooling. In a sample 100-MW model, this approach increases usable power load from 69.5 MW to 77.2 MW. The model assumes about 10% higher upfront costs but estimates $127 million in added value over 20 years. The company cites an example at the University of California, San Diego, where a 2.8-MW system supports a 400-ton absorption chiller.

FuelCell Energy is also advancing carbon-capture technology. The company is working with ExxonMobil on a pilot project in Rotterdam, with two modules expected to ship in the second quarter of 2026. Investors are also watching partnerships with companies like Vertiv Holdings. On the manufacturing side, the company is expanding its Torrington, CT, facility to support production capacity of up to 350 MW, backed by $20-$30 million in planned 2026 capital spending. Key milestones include turning proposals into firm agreements, shipping the Rotterdam modules, and increasing factory output toward 100-MW utilization levels.

While FuelCell Energy is developing its own approach to serving data centers, other companies are also positioning their technologies to capture this growing demand. Several energy firms are exploring different ways to supply reliable power to large computing facilities.

Peer Strategies for Supplying Power to Data Centers

Bloom Energy BE is placing strong emphasis on data centers, which it identifies as its largest and fastest-growing market segment. The company aims to address rising AI-driven electricity demand by supplying dependable onsite fuel cell power that reduces reliance on strained utility grids. Bloom Energy’s systems are designed for high reliability, rapid deployment and easy scalability, making them well-suited for hyperscale and colocation data centers around the world.

Enphase Energy ENPH is gradually positioning itself to benefit from data center power needs by expanding into commercial and three-phase energy solutions. Its IQ9 microinverters support 480V three-phase systems commonly used in data-intensive facilities, while the company’s planned small commercial batteries are intended to provide load shifting and backup power for users requiring high uptime. These solutions allow Enphase Energy to support reliable, efficient and scalable clean energy use in data-center-like environments.

The Zacks Rundown on FCEL

Shares of FuelCell Energy have lost 4.4% so far this year, underperforming the industry's growth.

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FCEL currently has an average brokerage recommendation (ABR) of 3.44 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by nine brokerage firms.

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The chart below shows FCEL’s earnings over the past four quarters.

Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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