Bloom Energy (BE) announced on Monday that it’s inked a multi-billion-dollar deal with investment firm Brookfield to build AI factories that can handle the industry’s booming compute and power demands.
As part of the partnership, Brookfield will invest up to $5 billion to deploy Bloom’s advanced fuel cell technology as part of what the companies are calling “a reimagined future for AI infrastructure.”
In a press release, the firms noted that the collaboration will merge Brookfield’s expertise on infrastructure development and financing along with Bloom’s fuel cell energy solutions, which delivers clean power capable of being rapidly deployed and can operate outside of legacy grids.
Brookfield calls itself the world's largest AI infrastructure investor and has poured over $100 billion into digital infrastructure across the globe.
“AI infrastructure must be built like a factory—with purpose, speed, and scale,” KR Sridhar, founder and CEO of Bloom Energy, said in a statement. “Unlike traditional factories, AI factories demand massive power, rapid deployment and real-time load responsiveness that legacy grids cannot support.”
He added that building a “lean AI factory” requires a combination of “power, infrastructure, and compute designed in sync from day one.”
Bloom and Brookfield “are actively collaborating” to design and deliver AI factories on a global scale, and they are expected to announce a new site in Europe before the end of the year.
Bloom’s stock surged 31.1% on news of the deal. It has shot up 412.8% for the year.
“Behind-the-meter power solutions are essential to closing the grid gap for AI factories,” Sikander Rashid, global head of AI Infrastructure at Brookfield, said in a statement. “Bloom’s advanced fuel cell technology gives us the unique capability to design and construct modern AI factories with a holistic and innovative approach to power needs.”
Wall Street bullish on Bloom’s data center bona fides
This is the second major AI power deal that Bloom has landed this year. The company entered into a partnership in July with Oracle Cloud Infrastructure (OCI) to supply power to select U.S. data centers.
The company got a boost when President Trump’s Big Beautiful Bill expanded tax credits to include fuel cells under the Internal Revenue Code, which is a rare victory for the clean energy sector under the current administration.
Bloom’s fuel cell systems are powered by hydrogen and natural gas.
Wall Street is growing bullish on the company’s ability to capitalize on opportunities within the AI boom. Evercore ISI analysts reiterated their Outperform rating for Bloom on Monday, while raising their price target to $137 from $100.
The analysts said in their note that “the momentum and overarching theme for Bloom remains: speed to power is paramount.”
“Importantly, this partnership marks the first investment by Brookfield through its dedicated Al Infrastructure strategy and further validates Bloom's ability to be a key player in the power infrastructure build-out to support Al,” they added.
However, in reiterating their Neutral rating and maintaining a $79 price target, Mizuho analysts said that while the deal with Brookfield “confirms Bloom’s role in large data center projects,” they also cautioned that the company “remains constrained by manufacturing capacity.”
The firm is projecting Bloom to reach its 5 gigawatt (gw) per year capacity by 2029.
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