US Data Centers Adopt Fuel Cells Amid Power Shortages
US hyperscalers are deploying on-site fuel-cell technology to bypass grid constraints as AI drives a massive surge in data center electricity demand.
Artificial intelligence is driving a massive surge in data center electricity consumption, with the International Energy Agency projecting global use will nearly double to approximately 945-950 terawatt-hours by 2030. In the United States, data centers accounted for 4.4% of electricity consumption in 2024, and some projections suggest they could consume 20% of total production by 2035. This demand has created significant bottlenecks, leaving roughly half of U.S. projects slated for 2026 facing power-related delays.
To mitigate these constraints, Bloom Energy and other fuel-cell providers are seeing rapid adoption as hyperscalers seek reliable on-site power. Bloom Energy reported a third-quarter revenue surge of 138% to $1.24 billion and raised its 2026 revenue forecast to between $4.4 billion and $4.6 billion. The company has already delivered power to an Oracle site in Utah in less than two months and is executing a similar project with Nebius in New Jersey. Oracle intends to procure up to 2.8 gigawatts of Bloom's systems.
FuelCell Energy also expects data centers to comprise 75%-85% of its business within three years. Rystad Energy projects that investments in fuel cells for data centers will grow from $2.8 billion in 2025 to approximately $30 billion by 2030. To support this growth, President Donald Trump has advocated for easing regulations to allow data centers to build their own off-meter power plants to maintain the U.S. lead in the AI race.
