FuelCell Energy partners with SDC to deploy up to 450MW of fuel cells across data centers globally

Investment firm Sustainable Development Capital (SDC) has partnered with US fuel cell developer FuelCell Energy to explore the deployment of up to 450MW of fuel cell power systems to support data center growth globally.

The collaboration would integrate FuelCell Energy’s carbonite fuel cell system with SDCL’s experience in financing and operating energy infrastructure. The companies inked a non-binding Letter of Intent outlining plans to work together and support the deployment of energy solutions that can directly support the data center sector.

“At SDCL, we invest in energy-efficient infrastructure that delivers long-term value while supporting the evolution to a cleaner energy system,” said Jonathan Maxwell, CEO of SDCL. “We believe that FuelCell Energy’s technology aligns well with that vision, offering reliable, high-availability power with significantly lower emissions. Its flexibility and efficiency make it particularly attractive for data centers, where resilience and sustainability increasingly need to go hand in hand.”

According to FuelCell Energy, its carbonite fuel system is designed to deliver onsite baseload power and can supply power independently of the electrical grid during normal operations. The company offers two fuel cell systems, one with a capacity of 2.5MW and the other with a capacity of 1.25MW. The systems can operate on natural gas, biogas, and natural gas/hydrogen blends of up to 50 percent hydrogen. In addition, the company claims the system can generate hot water, high-pressure steam, or chilled water, thereby increasing overall efficiency.

“As AI and high-performance computing scale, power is no longer just about more capacity—it’s about a different architecture,” said Jason Few, president and CEO of FuelCell Energy.

“With clear cost, efficiency, and power density advantages, the industry is moving toward centralized, 800-volt DC power for data centers. FuelCell Energy natively generates continuous, megawatt-scale direct DC power behind the meter, delivered today through AC-coupled systems and architecturally ready for 800-volt DC designs. Importantly, customers can deploy our systems today in AC configurations and transition to DC over time without replacing the core power modules, preserving flexibility as architectures evolve.”

The deal is FuelCell Energy’s second major deal within the data center space over the last 12 months. In July, the firm partnered with AI data center developer Inuverse to explore the deployment of up to 100MW of fuel cell power at a data center in Daegu, South Korea.

Established in 2007, SDCL is a developer, investor, and fund manager focused on energy efficiency and decarbonization.

Fuel cells are gaining popularity within the data center market, offering a lower-carbon solution for developers seeking dispatchable power.

The biggest player in the sector is Bloom Energy, which has signed a number of deals to power data centers within the US market. To date, it has signed agreements with AEP Ohio, Equinix, and Oracle to power data centers through its fuel cell technology.