Surging Data Center Demand Pushes This Stock Toward Buy Territory After Major Project Gets Green Light

Shares of Bloom Energy (BE), a provider of renewable energy and power solutions, soared on Thursday following the approval of a significant data center project in Wyoming. This development includes plans for 900 megawatts of Bloom’s fuel cell power generators, a move analysts believe could significantly boost the company’s future revenues.

On January 6, Laramie County officials approved the site plans for a 1.8-gigawatt data center. According to Morgan Stanley analyst David Arcaro, the proposal incorporates 900 megawatts of fuel cell-generated power, with Bloom Energy named as the likely supplier.

Construction on the project is slated to begin in the first quarter of 2026.

Arcaro estimated that this level of deployment could generate approximately $3 billion in product revenue for Bloom Energy, compared to the company’s projected $1.45 billion in product revenue for 2025.

Separately, American Electric Power (AEP) revealed in a regulatory filing that on January 4, one of its unregulated subsidiaries finalized an agreement to purchase a significant portion of its solid oxide fuel cell options. This acquisition is aimed at supporting the development and construction of a new fuel cell power facility valued at around $2.65 billion. The facility, expected to be built in Cheyenne, will operate under a 20-year offtake deal with a highly rated third-party buyer that will purchase 100% of the output.

Previously, AEP partnered with Bloom Energy to roll out up to 1 gigawatt of solid oxide fuel cell systems, mainly to power data centers.

Bloom Energy’s Market Movement and the Rise of AI Data Centers

Bloom Energy's stock jumped nearly 13% on Thursday, closing at 121.86, surpassing a key buy point at 119.90. The previous day, the stock rose 4.8% to 108, climbing back above its 50-day moving average—signaling a potential early entry point for aggressive investors.

Despite surging 291% during the 2025 market rally, BE shares closed the year down 41% from their all-time high of 147.86, set on November 10. However, the momentum has returned in early January, with the stock already up 40.3% for the month, according to MarketSurge.

In 2025, Bloom Energy secured key partnerships with major players like Brookfield Asset Management (BAM), Oracle (ORCL), and data center operator Equinix (EQIX).

Addressing concerns that improving energy efficiency in data centers might reduce overall power demand, Arcaro commented Thursday, “We believe it’s premature to assume that energy-efficient data centers will significantly lower total power needs.” He suggested that large-scale tech operators, or hyperscalers, are more likely to maximize power usage to support more chips, rather than cutting back on total energy consumption.

Bloom Energy holds a strong 97 Composite Rating, alongside a perfect 99 Relative Strength Rating and an 80 EPS Rating.