Bloom Energy (NYSE:BE) has reached a significant milestone in its partnership with Nebius (NASDAQ:NBIS), announcing that the first fuel-cell power block at the Vineland, New Jersey data center campus is ready for customer use. The update came from CEO KR Sridhar during the company's October 22 earnings call, marking a step forward in the effort to power large-scale artificial intelligence data centers with on-site generation.
However, the announcement leaves a critical question unanswered: the exact megawatt capacity of this initial block. Nebius's contract, signed in May 2026, separates approximately 328 megawatts of installed equipment from a 250 MW guaranteed supply. Neither figure directly measures the output of the newly ready block, creating ambiguity about how much power is actually available to support computing workloads at this stage.
According to the earnings call transcript, Sridhar confirmed that the first block of power is ready for customer use, noting that planning approval was secured within three months of signing, with power readiness following two months later. These company-reported intervals suggest a roughly five-month timeline from contract signing to initial power availability, but they do not clarify the electricity output or the timeline for the campus to begin serving AI workloads.
Analyst Christopher Dendrinos pressed for specifics on the block's megawatt capacity during the call. Sridhar responded by describing a phased deployment across the 300-MW campus but declined to specify the capacity of the first block, deferring data center timing questions to Nebius. This leaves investors and industry observers without a clear picture of the project's near-term operational status.
Contract Details and Financial Implications
The underlying agreement, signed on May 14, 2026, outlines three expected phases, each with a 10-year supply term. Bloom Energy is responsible for installing, operating, and maintaining the power systems. Aggregate monthly service fees could reach $2.6 billion over the contract's term, subject to commencement conditions. The planned installed capacity exceeds the guaranteed supply by 78 MW, with guaranteed capacity representing about 76% of the installed total, according to calculations from disclosed figures.
Nebius's May 20 announcement described the behind-the-meter electricity as a replacement for previously planned combustion engines, aiming to reduce reliance on new transmission infrastructure. Bloom's solid oxide fuel cells generate electricity without combustion, aligning with the data center's power needs. However, the installation milestone addresses only one part of the campus commissioning sequence, and the data center itself remains offline, as independently reported by Blockspace on October 23.
Financing and Market Context
On the same day as the earnings call, Nebius announced a $3.5 billion senior secured facility from Citi. The 364-day facility will fund data center development and GPU procurement, along with general corporate purposes, though it is not earmarked exclusively for Vineland. This short-term financing contrasts with the 10-year power supply contracts, highlighting the need for Nebius to manage its capital structure as it scales its AI infrastructure.
The milestone comes amid a broader trend of tech companies seeking reliable, on-site power solutions for energy-intensive AI data centers. Bloom Energy's solid oxide fuel cells offer a combustion-free alternative that can be deployed rapidly, but the lack of disclosed capacity metrics raises questions about scalability and performance under real-world computing loads.
What's Next?
Key missing figures include the first block's guaranteed output and the date when computing workloads will be commissioned. Nebius had targeted full operation of the 328-MW installation during 2026, but that remains an announced schedule. The remaining power phases depend on installation and customer construction schedules, and the first-block readiness does not verify sustained electricity delivery under load.
Investors will be watching for further disclosures from both companies, particularly regarding the megawatt capacity of the initial block and the timeline for the data center to come online. The 364-day credit facility also creates a near-term repayment or refinancing decision, adding another layer of complexity to the project's financial outlook.
