Brookfield Asset Management has announced plans to inject up to $5 billion into Bloom Energy’s fuel cell technology, which aims to power data centers as companies adapt to the growing demand for cleaner energy amid the artificial intelligence revolution. As a result, Bloom Energy’s shares soared by 24.5% to a record high of $108.17 in early trading.
This initiative marks Brookfield’s inaugural investment under its dedicated AI Infrastructure strategy, focusing on the transition to cleaner energy sources, including nuclear, renewables, and fuel cells. The surge in demand for AI and cloud computing services has prompted significant investments in the development and expansion of data centers.
According to analysts at Evercore ISI, Bloom Energy’s solid oxide fuel cells provide “reliable, scalable and clean on-site power.” They noted that these “hybrid power solutions” are increasingly essential to navigating the lengthy lead times and regulatory challenges associated with the legacy grid’s capacity for new generation.
Bloom Energy has a track record of implementing its fuel cell technology in data centers through partnerships with major companies like American Electric Power, Equinix, and Oracle. These collaborations aim to design and establish AI factories worldwide, including an upcoming site in Europe that is set to be announced later this year.
In a broader context, Brookfield is focused on expanding Europe’s largest AI infrastructure cluster. Earlier in June, the firm disclosed plans to invest up to 95 billion Swedish crowns (approximately $9.98 billion) in an AI data center in Sweden, along with a commitment of 20 billion euros for AI projects in France.
Fuel cells present a sustainable alternative to conventional power generation, as they create electricity through chemical reactions rather than combustion, resulting in byproducts such as water and heat, which are less harmful to the environment. This investment reflects a growing trend toward innovative and eco-friendly energy solutions as global demand for technology and data processing continues to escalate.