Bloom Energy's shares rose 1.6% in premarket trading following the announcement of a partnership with Nebius, which will utilize Bloom's fuel-cell technology to enhance electricity generation at its European data centers. Under the agreement, Nebius is set to pay Bloom up to $2.6 billion in service fees, contingent on certain conditions.
The collaboration will unfold in three phases over a decade, ensuring approximately 250 megawatts of guaranteed power capacity and 328 megawatts of installed capacity. Nebius' Chief Product and Infrastructure Officer, Andrey Korolenko, emphasized the importance of clean, onsite power to meet the demands of AI workloads.
This partnership comes as Nebius positions itself as a significant player in the European AI compute market, having secured substantial investments and partnerships, including a $2 billion deal with Nvidia and a $27 billion agreement with Meta.
However, the AI infrastructure sector in Europe faces challenges such as higher energy costs and delays in connecting to power grids, which could impact the scalability of such projects