Bloom Energy secures $2.6 billion deal with Nebius

Bloom Energy has entered into a $2.6 billion agreement with AI cloud provider Nebius to deploy 328 megawatts of fuel cell capacity in 2026. The deal, which involves total monthly services fees potentially worth up to $2.6 billion, underscores the growing demand for rapid, low-emission power infrastructure to support artificial intelligence workloads. This follows a separate contract to serve as the sole power provider for Oracle’s Project Jupiter in New Mexico, a multi-gigawatt facility that will replace traditional gas turbines and diesel backup generators with up to 2.45 gigawatts of Bloom Energy Servers.

Power infrastructure has emerged as a significant bottleneck in the AI sector, with grid connections often taking years and gas turbines facing permitting challenges related to air quality and water usage. Bloom Energy’s modular systems generate electricity without combustion, thereby avoiding nitrogen oxide emissions and reducing water usage compared to traditional power plants. The company’s technology also offers flexibility, allowing units to be relocated if construction projects are delayed, a feature not typically available with conventional power generation assets.

Financially, Bloom Energy reported a 130% year-on-year revenue increase to $751.1 million in the first quarter of 2026, marking its first time posting top-line growth of more than 100% as a public entity. The company also reported adjusted EBITDA of $143 million, up from $25.2 million in the prior year period. Management raised its full-year 2026 revenue guidance to between $3.4 billion and $3.8 billion, with gross margin guidance increased to approximately 34%.

The company ended the quarter with $2.5 billion in cash and posted positive operating cash flow for the first time in its history. Bloom Energy’s stock has returned more than 1,500% for shareholders over the past 12 months, with a market capitalisation of roughly $86 billion. Nine analysts recommend a “Strong Buy” for the stock, with an average price target of $250.27, although current trading levels sit near $302 per share.

The agreement with Nebius and the contract with Oracle highlight the company’s ability to address the specific needs of AI developers who require power infrastructure that matches the performance of cloud platforms. With a pipeline described by founder and CEO K.R. Sridhar as diverse and robust, Bloom Energy is positioning itself as a key player in the AI megatrend, offering an alternative to traditional energy solutions for data centre operators.