American Electric Power announced the acquisition of a substantial portion of its option for solid‑oxide fuel cells from Bloom Energy, a transaction valued at $2.65 billion. The deal secures a large stake in Bloom’s technology and represents a major portion of the 1 GW option that was originally set aside in a November 2024 agreement.
The original agreement reserved 100 MW of capacity with an option for an additional 900 MW. While the exact megawatt amount exercised in the $2.65 billion purchase is not disclosed, the transaction covers a significant share of that option, aligning with AEP’s $72 billion capital plan for 2026‑2030 aimed at expanding clean generation for data‑center and AI workloads.
Bloom Energy’s solid‑oxide fuel cells convert natural gas or hydrogen directly into electricity without combustion, delivering high‑density, low‑emission power. The company reported record revenue of $519 million in Q3 2025, a 57.1% year‑over‑year increase, and a non‑GAAP gross margin of 30.4%. The new contract provides long‑term revenue visibility and validates Bloom’s technology in the high‑growth AI data‑center market.
AEP’s financials show strong performance: Q3 2025 GAAP earnings of $1.82 per share and operating earnings of $1.80 per share. Full‑year 2024 operating earnings rose 7% to $5.62 per share. AEP maintains 2026 operating earnings guidance of $6.15 to $6.45 per share, reflecting confidence in its capital plan and the expected demand from data‑center customers.
The deal also includes a 20‑year offtake agreement for a Wyoming facility, with a high‑investment‑grade third‑party customer committing to 100% of the output. The offtake is contingent on conditions expected to be satisfied by Q2 2026, adding a layer of execution risk but also providing a secured revenue stream.
Bloom Energy CEO KR Sridhar highlighted the partnership as a milestone that demonstrates the scalability of its fuel‑cell technology for AI workloads. AEP CEO Bill Fehrman emphasized the deal as part of its strategy to meet growing data‑center demand with reliable, clean power.
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