Bloom Energy rises 2% after partnering with European AI infrastructure upstart in $2.6 billion deal

Shares of Bloom Energy saw a rise ahead of market open following the announcement of a strategic partnership with Nebius, a European provider of AI cloud services. This collaboration aims to address the increasing power demands associated with AI infrastructure development. Nebius revealed that it will utilize Bloom's advanced fuel-cell technology to enhance electricity generation at its data centers across Europe. The agreement, as detailed in a filing with the SEC, could yield service fees for Bloom totaling up to $2.6 billion, contingent upon specific conditions being met. Under the terms of the deal, Nebius plans to acquire the electricity produced by Bloom's systems, while Bloom will oversee the installation and operation of the necessary equipment. The initiative is set to unfold in three distinct phases over a decade, guaranteeing approximately 250 megawatts of power capacity and achieving an installed capacity of 328 megawatts, according to the filing. In premarket trading, Bloom's stocks were up by 1.6%, while Nebius, listed on Nasdaq, experienced a more substantial increase of over 7%. Andrey Korolenko, Nebius' Chief Product and Infrastructure Officer, emphasized the critical need for reliable power sources in AI infrastructure. "We chose Bloom due to their capability to deliver clean power with minimal pollutants right at the needed site, aligning perfectly with the urgent timelines required by our clients and the demands of AI workloads," he stated. As Nebius positions itself as a leading AI compute provider in Europe, it has secured several key partnerships, including a $2 billion investment from Nvidia and a substantial $27 billion infrastructure agreement with Meta. The company is also moving forward with plans for the largest AI data center in Finland, anticipated to have a capacity of 310 MW and begin operations by 2027. Despite the promising developments in AI infrastructure across Europe, the sector faces significant hurdles, including elevated energy costs relative to the U.S. and challenges related to connecting to power grids, which could delay project timelines.