Bloom Energy has the power to continue producing strong returns.
Bloom Energy (BE 0.90%) is having a monster year. Shares have skyrocketed 300%, powered by growing demand for its fuel cells by data center operators. That’s helping drive rapidly rising revenue and improving profitability.
While it will be difficult for the hydrogen stock to repeat that performance in 2026, it doesn’t mean that the party is over for Bloom Energy investors.
Image source: Getty Images.
What has powered Bloom Energy’s surge in 2025?
Data centers require a massive amount of electricity to run complex chips, extensive cooling systems, and other equipment. They need a stable source of energy 24 hours a day, seven days a week, and 365 days a year. As a result, data center operators require backup systems to ensure these facilities continue operating when the grid fails.
That’s leading many data center operators to turn to fuel cells for their power needs. For example, data center REIT Equinix has partnered with Bloom Energy to deploy its next-generation fuel cells across 19 of its data centers for reliable, cleaner onsite energy generation. The company has also partnered with Oracle to deploy fuel cells at some of its cloud infrastructure data centers. Additionally, Bloom Energy formed a $5 billion strategic partnership with Brookfield Asset Management, where it will become the preferred on-site power provider for Brookfield’s global AI factories (specialized AI data centers). Brookfield could install up to 1 GW of Bloom Energy’s power solutions in the future.
Today’s Change
(-0.90%) $-0.83
Current Price
$91.43
Key Data Points
Market Cap
$22B
Day’s Range
$88.66 – $93.40
52wk Range
$15.15 – $147.86
Volume
5.4M
Avg Vol
15M
Gross Margin
33.24%
These and other deals are driving surging demand for Bloom Energy’s advanced fuel cell technology. The company’s revenue rocketed 57% in the third quarter to $519 million, its fourth straight quarter of delivering record revenue. The company’s underlying profitability is also improving. It generated $7.8 million in operating income during the third quarter, reversing the $9.7 million loss it reported in the same period last year.
Just getting the party started
Bloom Energy has deployed about 1.5 gigawatts (GW) of its energy servers to 1,200 sites across a half dozen countries. Current customers include data center operators, electric utilities, and commercial and industrial companies that require reliable power at their mission-critical facilities. The company expects to ramp up its manufacturing capacity to 2 GW by the end of 2026, with its current facilities scalable to 5 GW as needed in the future.
That’s only a tiny fraction of the power needed by data centers alone in the future. U.S. data center power demand could reach 106 GW by 2035, up from 25 GW last year. That represents a massive potential total addressable market opportunity for Bloom Energy. Meanwhile, the global opportunity is even bigger.
Bloom Energy should continue growing its revenue briskly in the future as partners like Brookfield deploy its solutions at additional data centers. Meanwhile, the company will likely continue to partner with more data center developers, utilities, and commercial and industrial customers to help fulfill their future power needs.
While shares of the company could be volatile in the future, Bloom Energy has tremendous growth potential. That growth could give it the power to continue producing impressive returns in the coming years as electricity demand surges.
Matt DiLallo has positions in Brookfield Asset Management and Equinix. The Motley Fool has positions in and recommends Brookfield Asset Management, Equinix, and Oracle. The Motley Fool has a disclosure policy.