Bloom Energy Corporation (BE) saw its shares jump 11.7% in morning trading on Thursday after the San Jose-based fuel-cell company announced a major capacity agreement with Amsterdam-based AI cloud provider Nebius (NBIS). The deal, valued at up to $2.6 billion over 10-year supply phases, marks a significant milestone in the rapidly evolving market for behind-the-meter power solutions designed to accelerate artificial intelligence data center deployment.
Under the agreement, Nebius will purchase power capacity and electricity from Bloom's fuel-cell systems, with the first project expected to deliver 328 megawatts of installed capacity this year. This initial phase will replace gas turbines at the site, providing approximately 250 megawatts of guaranteed capacity. The modular systems will generate electricity on-site, bypassing the traditional utility grid and significantly reducing the time between site selection and compute capacity activation.
Nebius shares climbed 16.8% following the announcement, reflecting investor enthusiasm for the company's aggressive expansion into AI infrastructure. The deal is part of a broader growth strategy for Nebius, which closed a $4.34 billion convertible debt raise in March, with Nvidia investing $2 billion and the company securing large AI infrastructure supply agreements with Microsoft and Meta.
Bloom's fuel-cell technology generates electricity without combustion, resulting in lower emissions and reduced water consumption compared to conventional power sources. This environmental advantage, combined with the ability to deploy power systems faster than new transmission lines, positions Bloom as a key player in solving the power bottleneck that has become a critical constraint for AI data centers.
The agreement adds to Bloom's rapidly expanding investor narrative. The company reported first-quarter revenue of $751.1 million in April, a 130.4% year-over-year increase, and raised its full-year 2026 growth guidance midpoint to approximately 80%. CEO K.R. Sridhar stated that Bloom is becoming the 'go-to choice' for on-site power solutions.
Bloom's integration into the AI data center supply chain was further highlighted last month when Reuters reported that the company would supply Oracle with up to 2.8 gigawatts of fuel-cell capacity, with an initial 1.2 gigawatts already contracted and deployment underway.
Nebius operates as one of the 'neocloud' firms, alongside CoreWeave, focusing on selling AI-specific compute capacity to large technology customers. These providers are built primarily for AI workloads rather than general enterprise software needs, racing to meet the surging demand for high-performance computing.
Despite the positive momentum, the trade carries inherent risks. The Nebius filing notes that the Bloom agreement is subject to conditions before commencement, and both companies have flagged technical and operational challenges associated with large-scale power deployments. Valuation pressure also persists, with analyst target data on Bloom sitting below the latest market price despite a broad Buy consensus.
For investors, the central question is no longer whether AI requires power, but whether Bloom can install its systems quickly enough, profitably enough, and at the scale its stock price now anticipates. The answer will determine whether this partnership marks a turning point for the AI power trade or a cautionary tale in the race to build the infrastructure of the future.
