Shares of FuelCell Energy Inc (NASDAQ:FCEL) rose 4.5% on Tuesday after the company announced a strategic collaboration with Sustainable Development Capital LLP (SDCL) to assess the deployment of up to 450 megawatts of fuel-cell power capacity for data centers and other mission-critical facilities worldwide.
The partnership targets the rapidly rising electricity needs of artificial intelligence and high-performance computing, which are reshaping how data centers are designed and powered. By combining FuelCell Energy’s distributed, always-on baseload fuel-cell technology with SDCL’s expertise in financing and operating energy infrastructure, the companies aim to offer an alternative to traditional grid-dependent solutions.
“As AI and high-performance computing scale, power is no longer just about more capacity—it’s about a different architecture,” said Jason Few, President and CEO of FuelCell Energy. “FuelCell Energy natively generates continuous, megawatt-scale direct DC power behind the meter, delivered today through AC-coupled systems and architecturally ready for 800-volt DC designs.”
FuelCell Energy and SDCL have signed a letter of intent that outlines a framework for developing energy solutions designed to improve reliability, resilience and cost efficiency for energy-intensive operations. The move reflects a broader shift in which operators are increasingly evaluating on-site generation alongside grid supply, as they contend with long connection timelines, grid congestion and decarbonization requirements.
FuelCell’s systems are engineered to provide continuous, on-site electricity and can operate independently from the grid during normal conditions, provided a secure fuel supply is available. Because power is produced through an electrochemical process rather than combustion, the technology significantly reduces local air pollutants compared with conventional generation methods.