Key facts
- AI data centers are increasingly installing on-site fuel cells to bypass congested electricity grids.
- Rystad Energy projects fuel cell market revenues to grow from $2.8 billion in 2025 to $30 billion by 2030.
- Grid interconnection timelines for large data centers have tripled since 2015, now stretching to three to six years.
- Solid oxide fuel cells (SOFC) are the dominant technology for data center power, accounting for 53% of cumulative stationary deliveries.
- Bloom Energy's SOFC technology relies on scandium, a critical mineral with supply chain risks due to China's market control.
AI data centers are increasingly turning to on-site fuel cells as a solution for reliable power, bypassing congested and delayed electricity grid connections. Research from Rystad Energy indicates a significant market expansion, with fuel cell revenues projected to grow from approximately $2.8 billion in 2025 to around $30 billion by 2030, driven by the surge in AI computing demand and subsequent data center construction.
US grid interconnection timelines have extended to three to six years, prompting data center operators to seek alternative power sources. Rystad Energy estimates a cumulative demand of 10.4 GW for fuel cells from data centers between 2026 and 2030, with nearly half of projected US data center capacity likely to opt for dedicated on-site generation. Fuel cells offer quicker deployment and lower on-site emissions compared to traditional combustion alternatives, with the flexibility to transition to cleaner fuels like biogas or hydrogen.
North America is anticipated to lead global on-site power generation capacity, accounting for 91%, due to grid delays, federal tax incentives, and an established domestic supply chain. Power availability has become a critical constraint on data center growth, elevating fuel cells from a niche application to a significant component of firm power solutions.
Fuel cell manufacturers are expanding capacity, with aggregate operational and planned output projected to reach 4 GW per year by 2030, up from 1.8 GW currently. Solid oxide fuel cells (SOFC) are the dominant technology for always-on data center power, representing about 53% of cumulative stationary deliveries. Bloom Energy holds the majority of visible SOFC contracts, raising concerns about supply chain concentration.