The Power Play Behind Bloom Energy's Explosive Growth in 2025

Bloom Energy (NYSE: BE) has captured the market’s attention this year, delivering a remarkable run that pushed valuations over 400% at peak. While the stock has since retreated roughly 35% from its 52-week high, the underlying fundamentals deserve closer examination. The company is navigating a transformative moment driven by two interconnected forces: a proven operational model now achieving profitability, and a seismic shift in global power infrastructure demands.

Hydrogen Technology Meets Real-World Deployment

At its core, Bloom Energy operates solid oxide fuel cells that convert natural gas and hydrogen into on-site electricity, delivering continuous, emissions-reduced power generation. The technology isn’t theoretical—it’s already embedded across 1,200 global installations, representing 1.5 gigawatts of deployed capacity. That’s equivalent to powering approximately 1 million American households.

The company’s customer roster reads like a who’s who of global enterprise: Oracle, Amazon Web Services, Walmart, and FedEx all rely on Bloom’s infrastructure. This isn’t early-stage speculation; these are mission-critical deployments powering data centers, warehouses, and logistics networks.

What distinguishes Bloom Energy from competitors like Plug Power (NASDAQ: PLUG) is execution. While rivals struggle with scaling and profitability—Plug Power recently curtailed expansion due to cash constraints—Bloom Energy has doubled revenues over five years, achieved its first operating profit, and turned positive on free cash flow. The latest quarterly results showed a 57% year-over-year revenue surge paired with substantial margin expansion, jumping from 23.8% to 29.2% gross margin.

The AI Infrastructure Supercycle

CEO KR Sridhar frames the current environment as “a once-in-a-generation inflection point in how energy systems are architected and distributed.” That framing reflects a tangible market reality.

AI data centers represent the defining power challenge of this decade. These facilities demand uninterrupted, massive-scale electricity to sustain both computational servers and thermal management. Major cloud providers—particularly Amazon AWS—are channeling billions into AI infrastructure expansion. The result: power demand is outpacing every forecast issued just months earlier.

Bloomberg NEF recently revised its 2035 data center power consumption estimate to 106 gigawatts, a 36% upward adjustment from projections made seven months prior. This isn’t incremental growth; it signals structural undersupply that demands new generation capacity.

The Brookfield Catalyst

In October, Bloom Energy announced a transformative $5 billion partnership with Brookfield Asset Management, one of the world’s leading alternative asset stewards. The two organizations will construct AI-focused power facilities leveraging Bloom’s hydrogen fuel-cell infrastructure. This deal validates both the scalability of the technology and the willingness of institutional capital to commit long-term funding.

This partnership signals what investors should expect: accelerating deployment cycles, expanding customer bases in the energy-intensive computing sector, and sustained revenue momentum as the AI infrastructure buildout unfolds.

Valuation Questions in Context

The 35% pullback from Bloom Energy’s peak creates a natural inflection point for evaluation. The company’s transition to profitability, combined with secular tailwinds from data center power demand and institutional validation through major partnerships, positions it differently than speculative growth plays.

Whether now represents optimal entry timing remains a matter of individual risk assessment. What’s clear is that Bloom Energy has transitioned from an interesting technology story to a company capturing real revenues from real customers, achieving real profitability, all while positioned at the epicenter of the decade’s most critical infrastructure need: reliable, scalable, clean power generation for the AI era.