FuelCell Energy signs 380 MW deal with Fit Energy to power data centers

FuelCell Energy just locked in one of its largest power agreements to date. The Danbury, Connecticut-based fuel cell manufacturer signed a deal with Fit Energy to supply up to 380 MW of power capacity specifically targeting data centers, with an initial 30 MW tranche expected to come online this year.

Why fuel cells, why now

The company recently rolled out utility-grade power block solutions designed specifically for data centers, standardized at 12.5 MW per unit. FuelCell Energy has also established a new entity called Dedicated Power Partners, or DPP, to fast-track fuel cell deployments across large-scale applications.

Here’s the thing about fuel cells versus other distributed generation options: they run continuously. Unlike solar or wind, which depend on weather conditions, carbonate fuel cell platforms deliver baseload power 24/7.

The pipeline is getting bigger

FuelCell Energy has seen its engagement with hyperscalers and large-scale data center operators accelerate meaningfully. Average proposal sizes have reportedly doubled to 130 MW in recent transactions, up from previous periods.

FuelCell Energy specializes in megawatt-scale carbonate fuel cell platforms and has installations across multiple continents. The company’s technology converts natural gas (or biogas) into electricity through an electrochemical process rather than combustion, which means higher efficiency and lower emissions compared to conventional generators.

What this means for investors

FuelCell Energy, which trades on the NASDAQ under the ticker FCEL, has had a rough ride over the past few years. The stock has struggled alongside much of the clean energy sector as rising interest rates punished companies with long development timelines and capital-intensive business models.

Revenue recognition will obviously depend on actual deployment milestones rather than the headline capacity number, but even the initial 30 MW phase represents meaningful near-term activity.

The risk, as always with FuelCell Energy, is execution. The company has a history of ambitious announcements that took longer than expected to translate into revenue. Investors will want to see the first 30 MW phase delivered on schedule and performing to spec before pricing in the full 380 MW potential.

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