Even though building new nuclear or gas-fired plants and expanding solar and wind capacity will be essential to address the long-term power challenge posed by data centers, these initiatives won’t come online fast enough to meet short-term electricity demand. In the meantime, transitory power solutions are needed — and fuel cells are increasingly emerging as a leading option, a theme we first highlighted in the first half of 2024 through our investment in Bloom Energy.
Following earlier data center deals with Intel and Equinix, Bloom has accelerated its momentum with recent announcements — first with Oracle, and most recently with a $5 billion strategic partnership with Brookfield Asset Management to deploy up to 1 GW of Bloom fuel cells across data centers and AI factories worldwide. Under the agreement, Bloom becomes Brookfield’s preferred onsite power provider, partnering with a top-tier infrastructure investor with global scale and strong ambitions in the data center space.
These partnerships represent a major validation of Bloom’s solid oxide fuel cell technology for data center applications. Bloom’s technology is fuel-flexible (operating on hydrogen, natural gas, or blends), can be deployed within months, and provides reliable, 24/7 baseload power directly on-site — bypassing grid constraints and ensuring resilience.
The Brookfield agreement alone represents 1 GW, or half of Bloom’s planned 2 GW annual manufacturing capacity by end-2026, pointing to robust order growth visibility in the quarters ahead. Importantly, the Oracle and Brookfield deals could prove to be a turning point, driving broader adoption of fuel cells as a primary power source for data centers and paving the way for additional partnerships for Bloom.
Against this backdrop, we believe consensus forecasts of 20–30% revenue growth over 2026–27 leave ample room for upside, while margins should benefit from a strong leverage on manufacturing fixed costs. The EPS revision potential is then massive and should significantly reduce the stock’s PE to less than 30x 2027 EPS.
While Bloom currently leads the onsite power space for data centers, we are also monitoring and investing in other onsite power solutions (fuel cell, small gas turbines) likely to benefit from this accelerating race for near-term power supply.
