AI Data-Centre Buildout Drives New Interest in Fuel Cells

On-site power is being considered as grids remain constrained

Fuel cells are gaining attention among US hyperscalers building data centres for artificial intelligence, as developers face long waits for grid connections and seek reliable electricity, Reuters reported.

Rystad Energy projects investment in data-centre fuel cells will rise to about $30 billion in 2030 from $2.8 billion in 2025. The research firm says large-load grid interconnection timelines have stretched to three to six years, encouraging some operators to consider dedicated on-site generation.

A fuel cell produces electricity through a chemical reaction involving a fuel such as natural gas or hydrogen and oxygen. Unlike conventional generation, the process does not burn fuel inside the stack. Rystad said the technology can run on natural gas today and potentially transition to biogas, renewable natural gas or hydrogen as supplies develop.

Orders and manufacturing capacity remain constraints

Rystad estimates that roughly 40% of projected US data-centre capacity in 2030 could pursue dedicated on-site power. It projects 10.4 gigawatts of cumulative data-centre fuel-cell demand from 2026 through 2030 and says the visible industry order book is about 9 gigawatts, including framework agreements involving Oracle, AEP, Equinix and Brookfield. Such agreements do not necessarily represent firm orders for the full capacity cited.

Bloom Energy said Oracle intends to procure up to 2.8 gigawatts of its systems, with 1.2 gigawatts contracted, while FuelCell Energy is also targeting the sector. Rystad projects annual manufacturing capacity will reach 4 gigawatts by 2030 from about 1.8 gigawatts currently. Deployment still depends on permits, gas connections, transformers, switchgear and competitive costs.

Sources

https://www.reuters.com/business/energy/why-ai-data-centers-are-powering-boom-fuel-cell-demand-2026-10-23/

https://www.rystadenergy.com/news/data-center-fuel-cell-power-demand