Bloom Energy stock soars on AI deal: can the rally continue?

Shares of Bloom Energy BE and Nebius Group jumped on Thursday after the companies announced a long-term partnership aimed at addressing one of the biggest challenges facing artificial intelligence infrastructure expansion: access to reliable electricity.

Bloom Energy shares climbed to a fresh 52-week high, rising more than 12% during the session, while Nebius Group stock gained over 15%.

The rally extended gains from Wednesday after details of the agreement first emerged.

Under the partnership, Bloom Energy will provide fuel-cell systems to power Nebius data centers through on-site electricity generation.

The agreement could be worth up to $2.6 billion over its lifetime.

Nebius, an AI cloud infrastructure provider, said Bloom’s systems would help accelerate deployment of computing capacity by reducing reliance on local electrical grids and shortening timelines for powering new facilities.

AI infrastructure drives demand for alternative power

Electricity availability has become one of the largest bottlenecks for AI data center expansion as companies race to deploy infrastructure capable of supporting increasingly demanding AI workloads.

The agreement calls for Bloom Energy to deploy fuel-cell systems capable of delivering roughly 328 megawatts of installed capacity, with approximately 250 megawatts of guaranteed power capacity.

The rollout is expected to occur in three phases, each operating under 10-year supply terms.

Bloom’s systems will operate “behind-the-meter,” meaning the facilities will generate electricity on-site rather than relying directly on the broader electrical grid.

The arrangement allows Nebius to bypass delays tied to new grid transmission construction while improving energy reliability for AI computing operations.

“Power remains a key constraint for AI infrastructure build-outs,” said Andrey Korolenko, chief product and infrastructure officer at Nebius.

“We chose Bloom because their fuel cells solve that directly: Clean power with virtually no pollutants is deployed onsite, on the timelines our customers need, with the availability AI workloads require.”

Nebius said it expects the systems to begin operating this year.

Bloom Energy benefits from AI-driven expansion

The agreement adds to a growing list of AI-related partnerships for Bloom Energy, whose stock has surged more than 1,400% over the past year as investors increasingly focus on energy infrastructure providers tied to artificial intelligence growth.

Bloom Energy’s fuel-cell systems generate electricity without combustion and are increasingly being adopted by companies seeking alternatives to strained electrical grids.

Since 2024, Bloom has expanded or secured agreements with AI-focused cloud infrastructure firms and energy companies, including CoreWeave, Oracle, and American Electric Power.

The company’s improving outlook has also strengthened investor sentiment.

After several years of losses, analysts expect Bloom Energy to generate net income of roughly $475 million in 2026.

Wall Street forecasts earnings could exceed $1.2 billion in 2027 and rise further to more than $2.1 billion in 2028.

Nebius expands AI footprint in Europe

Nebius has also continued expanding its position within the AI infrastructure market.

The company recently secured a $2 billion investment from Nvidia and announced a $27 billion infrastructure agreement with Meta earlier this year.

Nebius also recently unveiled plans to build what it described as Europe’s largest AI data center in Finland.

The facility is expected to have 310 megawatts of capacity and begin serving customers by 2027.

The partnership with Bloom comes as European AI infrastructure developers face growing pressure from energy constraints, higher electricity prices, and delays in connecting new projects to power grids.

Nebius said the agreement with Bloom could eventually expand globally as demand for AI compute infrastructure continues to accelerate.