Bloom Energy’s stock reached a 52-week peak following its announcement of a collaboration with Nebius, a European AI cloud provider aiming to address power limitations in AI infrastructure development.
Nebius announced Wednesday that it plans to implement Bloom’s fuel-cell technology to produce electricity more efficiently and swiftly at its data centers in the U.S., with prospects for worldwide expansion.
The company stated in an SEC filing that the group will compensate Bloom with as much as $2.6 billion in service fees throughout the agreement's duration, contingent upon certain conditions.
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The cloud firm intends to purchase power produced by Bloom’s systems, whereas Bloom will install and oversee the equipment. The initiative is anticipated to launch in three stages across a decade, delivering approximately 250 megawatts of assured power capacity and 328 megawatts of installed capacity, according to the submission.
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Bloom's shares increased by more than 12percent, while Nebius, listed on the Nasdaq, rose by over 16percent.
“Power continues to be a major limitation for the development of AI infrastructure,” stated Andrey Korolenko, Chief Product and Infrastructure Officer at Nebius. "We selected Bloom because their fuel cells address that directly: Onsite clean power with minimal pollutants is provided on the schedules our clients demand, with the reliability AI workloads necessitate."
"We anticipate utilizing this technology in conjunction with our infrastructure as we keep expanding our capacity," he mentioned.
Nebius has established various partnerships as it rises as a prominent AI compute provider in Europe, featuring a $2 billion investment from Nvidia and a $27 billion infrastructure agreement with Meta in March.
It recently revealed intentions to construct the largest AI data center in the region in Finland, featuring a capacity of 310 MW, and is set to begin serving customers by 2027.
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Despite numerous AI compute commitments being revealed in Europe, various challenges persist, such as elevated energy costs compared to the U.S., and projects encountering delays in connecting to power grids and facing energy limitations.