FuelCell Energy announced a major AI data center power supply contract, with equity rising 16% immediately following disclosure.

FuelCell Energy (FCEL) shares climbed 16% Wednesday following the announcement of a strategic collaboration with Fit Energy USA LP to deliver up to 380 megawatts of clean fuel cell energy to data center operations through advanced fuel cell systems.

The partnership encompasses an upfront deposit from Fit Energy connected to an initial 30 MW power installation expected to become operational within the current year. The overall framework provides flexibility for expansion reaching 380 MW as subsequent projects materialize. Fit Energy will receive warrants contingent on achieving specific deployment benchmarks associated with the larger-scale rollout, ensuring both organizations remain committed to successful long-term project implementation.

Jason Few, President and CEO of FuelCell Energy, characterized the agreement as validating the company's strategic decision to scale operations to 500 MW. "This agreement further validates our decision to scale our operations to 500 MW, preserving our ability to serve a broad and growing pipeline of customers," Few said.

Joel Leonoff, CEO of Fit Energy, described the collaboration as establishing groundwork for advanced AI infrastructure capabilities. "FuelCell Energy's technology aligns with our growth objectives and our goal of delivering behind-the-meter power solutions to data centers at gigawatt scale," Leonoff said. Behind-the-meter electricity generation refers to energy produced and utilized directly at the facility location, eliminating reliance on conventional grid infrastructure—an approach that appeals to data center operators seeking enhanced reliability and accelerated deployment timelines.

FuelCell Energy specializes in utility-scale renewable energy solutions, while Fit Energy concentrates on electrical infrastructure tailored for data centers, high-performance computing, and artificial intelligence applications. The partnership positions FuelCell Energy at the center of rapidly expanding demand, as data center providers actively seek dependable, large-capacity power sources in response to rising electricity consumption driven by artificial intelligence deployment.

The warrant arrangement directly links Fit Energy's additional financial benefits to actual power deployment volumes, maintaining both parties' emphasis on execution and delivery. Canaccord Genuity provided financial advisory services to FuelCell Energy for specific elements of the deal. The opening 30 MW phase establishes a tangible short-term objective for the partnership to achieve before advancing toward the comprehensive 380 MW framework.