Bloom Energy to Produce Zero-Carbon Hydrogen at Nuclear Facility

Oracle commits 2.8 GW of fuel cell capacity for AI data centres

Oracle and Bloom Energy announced an expanded partnership in April 2026 to deploy up to 2.8 gigawatts of fuel cell capacity across Oracle’s AI and cloud infrastructure. The scale of the commitment reflects how rapidly growing AI workloads are driving demand for on-site, low-emission power generation that can bypass grid connection delays.

The initial phase covers 1.2 GW of fuel cell capacity, with deployment already underway. Oracle confirmed that its Project Jupiter campus in Doña Ana County, New Mexico, will run on Bloom Energy fuel cells. The technology offers lower emissions and reduced water consumption compared with conventional combustion-based generation, addressing two critical constraints for data centre operators.

Data centre energy demand has become a central challenge for companies scaling AI infrastructure. Traditional grid connections often involve multi-year waits for capacity upgrades. Fuel cells provide an alternative route by generating power on site, avoiding transmission bottlenecks whilst delivering the reliability that AI workloads require.

Bloom’s solid-oxide technology and hydrogen efficiency claims

Bloom Energy’s fuel cell systems are based on solid-oxide technology, which operates at high temperatures to convert fuel into electricity. The company also manufactures high-temperature electrolysers for hydrogen production, claiming efficiency gains over conventional low-temperature systems.

According to Bloom, its high-temperature electrolyser produces hydrogen at least 15% more efficiently than low-temperature PEM and alkaline systems. The company also states that its electrolyser generates 20 to 25% more hydrogen per megawatt than conventional lower-temperature alternatives. These efficiency claims matter commercially because hydrogen production costs are heavily influenced by energy input and conversion rates.

Hydrogen remains a contested fuel pathway. However, improved electrolyser efficiency could make hydrogen viable in applications where electrification is difficult, such as heavy industry and long-duration energy storage. For businesses evaluating decarbonisation routes, the efficiency of hydrogen production directly affects both cost and carbon impact.

Fuel cells and hydrogen in industrial decarbonisation strategy

Bloom Energy has positioned hydrogen as a decarbonisation tool for industrial and power applications for several years. In 2022, Westinghouse and Bloom signed a letter of intent to develop zero-carbon hydrogen production in the nuclear industry. The partnership explored using nuclear power to drive high-temperature electrolysis, creating hydrogen without fossil fuel input.

Bloom has also worked with SoCalGas on hydrogen demonstration projects in California. These projects tested how hydrogen could be generated and blended into existing natural gas infrastructure to support the state’s carbon-neutrality targets. Blending hydrogen into gas networks is seen by some operators as a transitional step, though it raises questions about infrastructure compatibility and emissions measurement.

The Oracle deal suggests that fuel cells are moving from pilot projects to commercial-scale deployment. For businesses with significant power needs, on-site generation can offer control over emissions, cost predictability, and independence from grid constraints. The 2.8 GW scale of Oracle’s commitment indicates that fuel cells are now considered a viable option for large, mission-critical infrastructure.

Why AI infrastructure is driving private power generation

AI data centres consume far more power per square metre than traditional cloud facilities. Training large language models and running inference workloads require dense computing power, which translates into dense electricity demand. Oracle’s decision to deploy nearly three gigawatts of fuel cell capacity reflects the difficulty of securing grid connections at the speed and scale AI expansion requires.

Behind-the-meter power generation allows operators to build capacity without waiting for utility upgrades. Fuel cells offer a relatively clean alternative to diesel generators, which many data centres still rely on for backup. Consequently, fuel cells are increasingly seen not as emergency backup but as primary power sources for new AI campuses.

This shift has broader implications for energy planning. If large technology companies continue to deploy private generation, grid demand forecasts may need revision. Meanwhile, businesses in other sectors may face longer waits for grid connections as network operators prioritise existing commitments. For UK manufacturers and logistics operators planning expansions, understanding how large-scale private generation is reshaping energy access could influence site selection and project timelines.

Five key facts about Oracle’s fuel cell expansion

• Oracle and Bloom Energy agreed to deploy up to 2.8 GW of fuel cell capacity for Oracle’s AI and cloud infrastructure in April 2026.
• The initial contracted phase covers 1.2 GW of capacity, with deployment already in progress across Oracle’s data centre portfolio.
• Oracle’s Project Jupiter campus in Doña Ana County, New Mexico, will be powered entirely by Bloom Energy fuel cells.
• Bloom Energy claims its high-temperature electrolyser produces hydrogen at least 15% more efficiently than conventional low-temperature systems.
• Fuel cells offer on-site power generation with lower emissions and reduced water use compared with combustion-based generation, addressing key data centre constraints.

What Oracle’s fuel cell strategy means for UK businesses

The Oracle announcement illustrates how private power generation is becoming central to infrastructure planning for energy-intensive operations. UK businesses facing grid connection delays or capacity constraints may find similar interest in on-site generation technologies, though regulatory and planning frameworks differ significantly from the United States.

In the UK, behind-the-meter generation typically requires planning permission and may involve export arrangements with the local distribution network operator. Fuel cells are less common than battery storage or diesel generators, partly because natural gas networks and electricity grids have historically offered reliable, competitively priced supply. Nevertheless, businesses with high power density requirements, particularly in manufacturing, cold storage, or data processing, may find that on-site generation offers greater control over emissions and energy costs.

Hydrogen remains an emerging fuel in the UK. Government policy supports hydrogen development for heavy transport, heating, and industrial processes, but commercial supply chains are still forming. Businesses considering hydrogen-based technologies should assess fuel availability, infrastructure requirements, and regulatory support before committing to deployment.

For companies reporting carbon emissions under frameworks such as the Streamlined Energy and Carbon Reporting scheme or preparing for supply chain due diligence, on-site low-emission generation can reduce Scope 2 emissions and provide clearer narratives around decarbonisation progress. However, fuel cells running on natural gas still produce emissions, so clarity about fuel source and carbon intensity is important for accurate reporting.

UK businesses evaluating decarbonisation investments should consider how quickly energy demand is changing in their sector, what grid capacity is available at existing or planned sites, and whether on-site generation could improve resilience or reduce costs. The Oracle deal shows that very large commitments to alternative power are now commercially viable, but scale, fuel availability, and regulatory context all vary between markets.

Where to find further information on fuel cells and hydrogen

The UK government publishes guidance on hydrogen production and use through the Department for Energy Security and Net Zero. The UK Hydrogen Strategy outlines policy support for hydrogen development across industry, transport, and power generation.

Businesses interested in fuel cell technology can find technical standards and certification information through the British Standards Institution. The Office of Gas and Electricity Markets regulates energy markets and provides guidance on grid connections and distributed generation.

For companies reporting emissions or preparing for supply chain sustainability requirements, the Streamlined Energy and Carbon Reporting guidance sets out UK reporting standards. Businesses seeking support with carbon reporting compliance or net-zero planning can explore our net-zero program for carbon reporting and PPN 06/21 compliance.