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Just For You AI Power Crunch: Why Bloom Energy Is the Hidden WinnerWritten by Jeffrey Neal Johnson. Posted: 2/11/2026. 
Key Takeaways - Bloom Energy offers data centers a rapid power solution and efficient architecture that successfully bypasses traditional utility grid delays.
- Strategic partnerships with major asset managers and utilities have validated the technology and secured a massive backlog of future product orders.
- The company has achieved operating profitability while favorable government legislation provides long-term certainty for tax credits and expansion.
For the past two years, the stock market has been obsessed with the brains of the artificial intelligence (AI) revolution. Investors poured billions into companies designing advanced chips and building large language models, driving valuations to historic highs. While the market focused on computing power, a massive physical bottleneck quietly emerged that now threatens to derail the industry: a global shortage of reliable electricity. The United States' electrical grid is aging, congested and struggling to meet modern demand. In major data center hubs like Northern Virginia and Silicon Valley, interconnection queues (the waiting list to connect new commercial facilities to the power grid) stretch three to five years. Those delays are catastrophic for technology giants. Central banks bought more gold last year than in any year since 1967 — and the pace is accelerating just as physical demand begins to overwhelm paper supply. The next major delivery cycle opens March 31, when paper contract holders can demand physical gold from Western vaults. Dylan Jovine at Behind the Markets has identified one small company sitting on one of the largest undeveloped gold deposits in North America, positioned to benefit if this supply-demand imbalance intensifies after the delivery window opens. See Dylan Jovine's Gold Miner Pick Before the March 31 Delivery Window These companies need to bring billions of dollars of AI chips online quickly to remain competitive. AI data centers require massive, continuous, reliable power, and the traditional utility model is failing to keep up. Enter Bloom Energy (NYSE: BE). Once viewed primarily as a speculative bet on a future hydrogen economy, Bloom has pivoted its business model to address this immediate crisis. It is no longer just a clean energy company; it has become a critical infrastructure provider offering a rapid time-to-power solution that can bypass the utility grid entirely. Wall Street is waking up to that reality. The stock has risen approximately 489% over the last year as investors recognize Bloom supplies the physical heartbeat the AI revolution needs. The company's recent fourth-quarter earnings validated the momentum, delivering earnings per share (EPS) of $0.45, well above analyst expectations of $0.25. The Competitive Moat: Speed and Physics The primary reason Bloom is winning contracts over traditional utilities is simple: speed. In the high-stakes world of AI, time is money. Every month a data center sits idle waiting for a power connection represents millions in lost revenue and market share. Traditional utilities often need years to upgrade transmission lines and substations for a new hyperscale facility. Bloom offers a workaround. By installing its solid-oxide fuel cells on-site, Bloom effectively turns a data center into its own independent power plant. During the recent earnings call, CEO KR Sridhar said the company deployed a hyperscale AI data center order in just 55 days. That contrasts sharply with the typical 90-day timeline Bloom usually offers and the multi-year waits common with grid connections. Beyond speed, Bloom has an engineering advantage rooted in power physics. The traditional electrical grid delivers power as Alternating Current (AC), while computer chips and server racks run on Direct Current (DC). Connecting a data center to the grid requires expensive, heavy and inefficient equipment to convert AC to DC. That conversion wastes energy as heat, which then requires even more energy to cool. Bloom's Energy Servers generate electricity natively in DC. Its new 800-Volt DC architecture allows fuel cells to connect directly to AI server racks, creating a streamlined power flow that eliminates multiple conversion steps and the need for massive transformers and rectifiers. The result is greater energy efficiency, less waste heat and a smaller physical footprint—important advantages where data center floor space is premium real estate. Institutional Validation: The $20 Billion Backlog Bloom's move from niche energy product to essential infrastructure is reflected in the caliber of contracts it is signing. The technology is now being deployed at industrial scale by some of the largest capital allocators in the world. In late 2025, Bloom announced a strategic partnership with Brookfield Asset Management. Brookfield established a $5 billion financing framework specifically to deploy Bloom's fuel cells. That deal is a vote of confidence from smart money: it validates the asset class and provides Bloom with a funded pathway to scale, allowing deployments without the company having to finance every project on its own balance sheet. Utilities are also recognizing they cannot meet demand alone. American Electric Power (NASDAQ: AEP), one of the largest U.S. utilities, signed a supply agreement for up to 1 gigawatt (GW) of solid-oxide fuel cells. This signals a shift: rather than viewing on-site generation as competition, major utilities are partnering with Bloom to relieve capacity constraints. Further validation comes from the tech sector. Bloom's collaboration with Oracle (NYSE: ORCL) to power AI data centers included warrants for Oracle to buy more than 3.5 million shares of Bloom. That aligns a major customer financially with Bloom's success. These strategic wins helped push Bloom's product backlog to about $6 billion, a 140% year-over-year increase. When combined with long-term service agreements, the total backlog now sits near $20 billion, providing high visibility into future revenue. Growth, Guidance, and Government Support The financial data supports a bullish case. Bloom finished fiscal 2025 (FY2025) with record revenue of $2.02 billion, a 37% increase year over year. Management projects FY2026 revenue between $3.1 billion and $3.3 billion, which would imply year-over-year growth exceeding 50% if achieved. Importantly, the company has begun to show sustained profitability. For FY2025, Bloom reported non-GAAP operating income of $221 million, distinguishing it from many peers in the clean-energy space—such as Plug Power (NASDAQ: PLUG)—that continue to struggle with cash burn and negative margins. Bloom has demonstrated it can grow revenue while exercising fiscal discipline. Investors also benefit from a stabilized policy backdrop. The One Big Beautiful Bill Act (OBBBA), passed in 2025, reinstated the 30% Investment Tax Credit (ITC) for fuel cells. Crucially, the credit applies regardless of fuel source: customers running a Bloom Box on natural gas today or transitioning to hydrogen later still qualify. The ITC is available for projects that begin construction through the end of 2033, creating long-term certainty that supports large, multi-year contracts. Scaling for the Future: A Derivative AI Trade Bloom has effectively decoupled itself from the volatile, often unprofitable parts of the clean-energy sector and become a derivative play on artificial intelligence infrastructure. While the company faces the operational challenge of scaling manufacturing—doubling its Fremont, California, capacity to 2 GW by the end of 2026—it finished 2025 with a strong balance sheet and roughly $2.5 billion in cash. The business model also includes a powerful recurring-revenue engine. Every product sale has a 100% attachment rate to long-term service contracts. As the installed base grows, so will a steady stream of high-margin service revenue, creating a compounding financial foundation. For investors seeking exposure to the AI boom without paying premium valuations for chip makers, Bloom Energy offers a compelling alternative. It provides the essential physical infrastructure the digital revolution needs. As long as data centers require power faster than the grid can provide, Bloom is well positioned to grow.
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