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Earlier this week, American Electric Power said a subsidiary exercised its option to buy about US$2.65 billion of Bloom Energy solid oxide fuel cells for a 900 MW Wyoming power facility backed by a 20‑year offtake agreement.
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This is Bloom’s first multi‑hundred‑megawatt utility order, signaling that its on‑site fuel cell technology is being adopted at true grid‑scale for AI‑driven power demand.
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Now we’ll examine how this first large‑scale utility fuel cell order may reshape Bloom Energy’s investment narrative around AI data centers.
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To own Bloom Energy, you need to believe its solid oxide fuel cells can become a mainstream way to power large, always‑on computing loads, particularly AI data centers, while the company scales profitably. The AEP deal directly reinforces the key near term catalyst of large, contracted utility and data center orders, but it also magnifies the biggest current risk: executing a rapid capacity build out without ending up with underutilized, low margin manufacturing.
In that context, the new US$600 million revolving credit facility with Wells Fargo matters, because it gives Bloom more flexibility to fund working capital and capex as these multi‑billion‑dollar AI and utility projects ramp. It strengthens Bloom’s ability to support big contracts like AEP and Brookfield while it works through the execution and profitability risks that come with doubling capacity and fulfilling complex, long duration power agreements.
Yet behind the excitement around AI power demand, investors should be aware of the execution risk if Bloom’s planned capacity build out…
Read the full narrative on Bloom Energy (it’s free!)
Bloom Energy’s narrative projects $2.7 billion revenue and $395.4 million earnings by 2028. This requires 19.0% yearly revenue growth and about a $371.7 million earnings increase from $23.7 million today.
Uncover how Bloom Energy’s forecasts yield a $111.18 fair value, a 17% downside to its current price.
Seven fair value estimates from the Simply Wall St Community span roughly US$28 to US$157, with views clustered across almost the entire range. Against that wide dispersion, Bloom’s growing roster of large AI and utility contracts focuses attention on whether it can scale manufacturing efficiently enough to justify the more optimistic expectations.
