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Bloom Energy (NYSE:BE) has signed a 20-year offtake agreement with a US utility subsidiary to supply solid oxide fuel cells worth $2.65 billion.
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The company also entered into a new partnership with Brookfield Asset Management focused on providing on-site power solutions for AI data centers around the world.
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These agreements position Bloom Energy as a long-term, on-site power provider for digital infrastructure customers, including AI workloads.
Bloom Energy builds solid oxide fuel cell systems that provide on-site power, often for customers who want resilient, low-emission electricity off the traditional grid model. The multibillion-dollar deal with a US power subsidiary and the new Brookfield partnership both connect this core technology to the needs of AI data centers, which require large amounts of reliable power. For investors, these contracts underscore how Bloom Energy is positioning itself at the intersection of electrical and digital infrastructure.
The 20-year acquisition structure and data center focus indicate the types of customers Bloom Energy is targeting and the time horizons it is signing up for. As AI-related energy demand and on-site generation solutions gain attention, the scale and duration of these new agreements can serve as benchmarks when considering Bloom Energy’s role in the broader data center energy market.
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Why Bloom Energy Could Be Great Value
For Bloom Energy, AEP’s $2.65 billion takeover and partnership with Brookfield AI data center help explain why the stock has become one of the strongest names in alternative energy, with investors focusing on long-term contracted income and the company’s role in solving power constraints for AI workloads. The market reaction, including an all-time high share price and a higher price target from Jefferies, suggests that investors are treating Bloom less as a niche cleantech name and more as a provider of infrastructure for the digital economy, alongside partners such as FuelCell Energy and Plug Power.
The new offerings align closely with existing investor narratives that highlight AI data centers, network constraints and policy support as key drivers for Bloom’s transition from early-stage fuel cell provider to on-site energy provider with recurring service revenue. At the same time, the narratives also signal the tension between this growth story and concerns about natural gas dependence, capital intensity, and competition from zero-emissions solutions, so these announcements tend to reinforce both the bull on demand and the bear on execution and technology risk.