FuelCell Energy’s recently announced partnership with Sustainable Development Capital LLP marks one of the company’s most significant growth opportunities to date—a 450 MW pipeline of distributed, baseload power projects designed to support rapidly expanding energy demands, including those driven by AI and data center development. To help unpack what this collaboration means for the company, our customers, and the future of sustainable power, President and CEO Jason Few sat down for a Q&A to discuss why SDCL is an ideal strategic partner, how this agreement positions FuelCell Energy in the data center market, and what comes next as both organizations move toward final investment decisions.
Q: Tell me about Sustainable Development Capital LLP.
A: Sustainable Development Capital LLP--SDCL--is headquartered in London and focuses on developing, investing and operating efficient, decentralized energy infrastructure solutions across the U.S., the U.K. and Europe. An example of one of their sites they own and operate is the REDRochester district energy system in Rochester, NY, which SDCL acquired in 2021. They’ve invested heavily to modernize and decarbonize the site.
Q: Why is this partnership a significant opportunity for FuelCell Energy?
A: If you think about what’s happening across the power generation landscape it’s clear there’s not enough power today to fuel the level of growth that’s being driven by AI and data centers, or what are now being called “AI factories.”
This partnership is a chance to deliver on what we’ve always stood for: distributed generation as essential baseload power. The fastest way to accelerate growth is to deliver power where the need exists—and distributed technologies make that possible. Our technology is well-suited for large-scale utility applications, including powering AI-driven data center growth. A 450 MW opportunity to partner with SDCL, which already operates gigawatts of electricity, and which shares our commitment to sustainable baseload power, is a really good alignment with what our purpose is as a company.
Q: Does this mark FuelCell Energy’s entry into the data center market?
A: It’s our first in North America. We are looking forward to the Inuverse project in Korea, which is intended to be the country’s largest data center. We signed a memorandum of agreement to supply up to 100 MW of fuel cell-based power in phases beginning in 2027.
Our plans with SDCL are more imminent, and I’m excited for the opportunity for the company, our team members, and our shareholders. We’ve always said that distributed power will be part of the answer, and fuel cells are an important are an important part of the energy stack that was acknowledged in the One Big Beautiful Bill Act and investment tax credit. Globally, as data centers expand—especially in urban areas—our technology offers advantages: no harmful emissions, near-silent operation, and modular scalability to match demand without overbuilding.
Q: What is the initial scope of the agreement?
A: The LOI outlines 450 MW of identified projects. These projects need to move to final investment decisions (FID). Some are on short timelines; others are in progress. Beyond these, there’s an even larger pipeline, but the 450 MW represents near-term opportunities for both companies.
Q: Why partner with SDCL instead of going directly to hyperscalers like Amazon or Google?
A: We’re in discussions with hyperscalers, and we believe we can offer solutions to them, as well. But there are several advantages to the SDCL opportunity.
Financing: Rather than an energy-as-service approach, SDCL can provide financing and deliver large-scale solutions.
Shared Vision: Both our companies prioritize sustainable energy without asking customers to change their operations.
Pipeline: SDCL also has a robust data center pipeline and distributed generation projects, plus proven operational expertise.
Experience: The SDCL team has first-hand experience working with and within Hyperscalers. For example, their executive director leading sustainable datacenter work and site development has multiple decades working for the biggest data center operators.
This creates a powerful combination with the ability to get things done quickly.
Q: How important is sustainability in this partnership?
A: It is central to us both, and while expanding solar, wind, and nuclear energy is crucial, these sources alone cannot satisfy the constant, high-demand energy needs of the AI economy. Responsibly managed natural gas—utilized through advanced, high-efficiency, near-zero-emission fuel cell systems—provides essential baseload power and enables progress without interruption, all while supporting a more comprehensive approach to sustainability.
How power gets generated is an important part of the equation, but equally important is land use and the impact it has on the community. We are not going to make air quality worse. We are not going to require a massive land mass. We are not going to make noise. We are going to increase local tax bases. These are all positive things to a community.
Q: Does FuelCell Energy have the capacity to meet demand?
A: Yes. Our Torrington facility can scale to 350–400 MW with planned investments. We’ve done extensive work on scenarios to extend demand further, and we will announce those when appropriate milestones are reached.
Q: Will this accelerate FuelCell Energy’s path to positive EBITDA?
A: Yes. Our target is 100 MW of steady production and adding capacity from these projects and other projects in our pipeline positions us well to reach that goal.