(Reuters) – Brookfield Asset Management said on Monday it would invest up to $5 billion in Bloom Energy’s fuel cell technology to power data centers, as companies look to cleaner energy to meet the needs of the artificial intelligence boom.
Shares of Bloom Energy rose 31% to $113.72 in premarket trading.
Companies are turning to cleaner energy sources such as nuclear, renewables and fuel cells, as they invest billions in building and expanding data centers to meet rising demand for AI, cloud computing and digital services.
The two companies are working on the design and delivery of AI factories globally, including a site in Europe that will be announced before the end of the year, they said.
Brookfield is working to expand Europe’s largest AI infrastructure cluster. In June, it announced plans to invest up to 95 billion Swedish crowns ($9.98 billion) to build an AI data center in Sweden and a commitment of 20 billion euros for AI projects in France.
Fuel cells offer a cleaner alternative to traditional energy by generating electricity through chemical reactions rather than combustion. Depending on the fuel, byproducts can include water and heat, making them more environmentally friendly.
Bloom Energy has already deployed its fuel cell technology in data centers, through partnerships with American Electric Power, Equinix and Oracle.
($1 = 0.8639 euros)
($1 = 9.5158 Swedish crowns)
(Reporting by Dharna Bafna and Tanay Dhumal in Bangalore; editing by Sonia Cheema and Leroy Leo)
