FCEL Sets Sights on AI Data Centers Through DC Power and Carbon Capture

FuelCell Energy’s Innovations for AI Data Centers

FuelCell Energy is focusing on powering AI data centers with its carbonate fuel cell technology, which delivers direct current (DC) electricity. The company showcases an 800-volt DC configuration that can either integrate with a facility’s power infrastructure or be installed near AI server racks. Additionally, a 13.8-kilovolt alternating current (AC) solution is available to energize entire sites. By minimizing the number of power conversion steps, FuelCell Energy aims to boost efficiency, cut installation expenses, and enhance reliability—an increasingly important factor as data center energy requirements surge.

Advanced Cooling Solutions

Cooling is a central element of FuelCell Energy’s approach. The company notes that the heat generated by its fuel cells can be repurposed to drive absorption chillers, thereby helping to cool data centers and reducing the overall electricity needed for cooling systems. In a 100-megawatt demonstration model, this method raises the usable power load from 69.5 MW to 77.2 MW. While this setup involves approximately 10% higher initial investment, it is projected to deliver $127 million in additional value over two decades. A real-world example is found at the University of California, San Diego, where a 2.8-MW installation supports a 400-ton absorption chiller.

Progress in Carbon Capture and Manufacturing

FuelCell Energy is also making strides in carbon capture, collaborating with ExxonMobil on a pilot project in Rotterdam. Two modules are scheduled for delivery in the second quarter of 2026. The company is also expanding its manufacturing capabilities at its Torrington, Connecticut facility, aiming for up to 350 MW of production capacity, supported by $20–$30 million in planned capital investments for 2026. Key objectives include converting proposals into finalized contracts, shipping the Rotterdam modules, and ramping up factory output toward 100-MW utilization targets. Partnerships with companies such as Vertiv Holdings are also being closely monitored by investors.

Industry Competition

While FuelCell Energy is developing its own solutions for data centers, other energy companies are also introducing technologies to meet the growing demand for reliable power in large-scale computing environments.

How Other Companies Are Powering Data Centers

• Bloom Energy is prioritizing data centers as its fastest-expanding market. The company addresses the increasing electricity needs driven by AI by providing dependable onsite fuel cell power, reducing dependence on overburdened utility grids. Bloom Energy’s systems are engineered for high reliability, quick deployment, and scalability, making them ideal for both hyperscale and colocation data centers worldwide.
• Enphase Energy is gradually expanding into the data center sector by offering commercial and three-phase energy solutions. Its IQ9 microinverters are compatible with 480V three-phase systems, which are common in data-heavy facilities. Enphase is also developing small commercial batteries to provide load shifting and backup power, supporting high-uptime requirements. These offerings enable efficient, reliable, and scalable clean energy in environments similar to data centers.

FCEL Stock Performance and Analyst Ratings

FuelCell Energy’s stock has declined by 4.4% year-to-date, lagging behind the broader alternative energy industry’s performance.

Image Source: Zacks Investment Research

The company currently holds an average brokerage recommendation of 3.44 out of 5, based on ratings from nine different firms.

Image Source: Zacks Investment Research

The following chart illustrates FuelCell Energy’s earnings results over the last four quarters.

Image Source: Zacks Investment Research

Currently, FuelCell Energy is rated as a Zacks Rank #3 (Hold).

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