Why Bloom Energy (BE) Is Up 28.1% After Securing Largest Ever AI Data Center Power Project

• In recent days, BFC Power LLC filed an application to construct a 900-megawatt power plant in Wyoming using Bloom Energy's fuel cells, targeting the energy needs of a planned 1.8-gigawatt data center campus. This proposal marks Bloom Energy's largest potential project to date and highlights its expanding role in meeting the power demands of next-generation AI data centers.
• The Wyoming project underlines the increasing adoption of fuel cell technology as a solution for reliable, onsite power amid growing regional grid constraints and surging demand from artificial intelligence and high-performance computing sectors.
• We'll explore how Bloom Energy's involvement in this large-scale AI data center initiative could influence its long-term growth outlook and positioning.

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Bloom Energy Investment Narrative Recap

For investors considering Bloom Energy, the core thesis rests on the belief that surging demand from AI and cloud data centers, combined with ongoing grid constraints, will sustain rapid adoption of the company’s fuel cell technology and support long-term earnings growth. The recent Wyoming project announcement could act as a meaningful near-term catalyst by reinforcing Bloom’s position in high-demand data-center power, but the project remains in the approval phase and is not yet a confirmed order, so immediate impacts on earnings visibility and execution risk appear limited.

Among recent developments, Bloom’s deployment of its fuel cell technology for Oracle Cloud Infrastructure stands out. This announcement underscores a key catalyst for the business: growing partnerships with hyperscalers seeking resilient, on-site power solutions for energy-intensive AI workloads, a tailwind mirrored by the Wyoming project and relevant for anyone tracking the company’s project pipeline and revenue growth trajectory.

However, despite recent momentum, there remains the risk that future delays or slower-than-expected demand for new buildouts could...

Read the full narrative on Bloom Energy (it's free!)

Bloom Energy's narrative projects $2.7 billion in revenue and $395.4 million in earnings by 2028. This requires annual revenue growth of 19.0% and an earnings increase of $371.7 million from the current $23.7 million.

Uncover how Bloom Energy's forecasts yield a $43.78 fair value, a 50% downside to its current price.

Exploring Other Perspectives

Eight Simply Wall St Community members estimate Bloom Energy’s fair value between US$27.76 and US$230.14 per share. While many see upside from the AI data center trend, execution risk on large-scale deployments could influence future results; other investors may weigh this differently.

Explore 8 other fair value estimates on Bloom Energy - why the stock might be worth less than half the current price!

Build Your Own Bloom Energy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Bloom Energy research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.
• Our free Bloom Energy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Bloom Energy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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