Sixers’ new sponsor Bloom Energy was long a money-loser and now soars with AI data center orders
Bloom Energy, a fuel cell manufacturer, has experienced a significant financial turnaround and joined the S&P 500, largely due to increased demand for its off-grid power plants from AI data centers. Its main manufacturing plant in Newark, Delaware, has become profitable, leading to a production backlog and new hires. The company provides power solutions to major tech firms and data centers, enabling them to operate independently of the strained electric grid.
Bloom Energy, a Silicon Valley company with its largest manufacturing plant in Newark, Delaware, has seen its financial fortunes reverse due to a surge in orders from high-speed artificial intelligence data centers. The company, which produces modular, off-grid electric plants using fuel cell technology, recently joined the S&P 500 and became a sponsor for the Philadelphia 76ers, raising its local profile and intensifying recruiting efforts in Pennsylvania, New Jersey, and Maryland.
The Newark plant, employing 1,200 of Bloom's 2,200 workers, manufactures fuel cells that generate electricity from natural gas or hydrogen-based fuels, operating independently of traditional power grids. This off-grid capability is crucial for AI data centers built by giants like Oracle, Microsoft, and Intel, which face long approval processes for grid connections. One such customer, the DataOne center in Vineland, New Jersey, has placed significant orders, boosting Bloom's production and leading to new hires and automation at the Newark facility.
Despite opening in 2012 with state aid and going public in 2018, Bloom Energy struggled financially for years, with its stock price below its initial offering. The recent influx of data center orders has driven its share price to new highs, making the company worth an estimated $85 billion. Historically, Delaware power users have paid over $200 million in surcharges to cover Bloom's costs under a 21-year contract, which has faced regulatory and legal challenges. Short-sellers and critics have raised concerns about the reliability of future orders and the efficiency of fuel cells.
Bloom Energy's CEO, KR Shridhar, founded the company in 2001. The Newark plant, which once operated at a fraction of its projected capacity and failed to meet initial employment targets, has now reached its limit and is planning a 125,000-square-foot expansion. This growth is driven by the demand for its 325-kilowatt, 13-ton fuel cell units, which offer a quickly deployable and scalable power solution for data centers without straining the existing U.S. electric grid.