Summary
Bloom Energy Corp (BE, Financial), a leader in power solutions, has released a mid-year update to its 2025 Data Center Power Report, highlighting the increasing adoption of onsite power by data centers. The report, released on June 17, 2025, underscores the challenges data centers face in securing timely electricity, a critical factor for the AI industry's future. The update reveals that power availability is now a primary consideration in data center site selection, with significant implications for the sector's growth and sustainability goals.
Positive Aspects
- Onsite power generation is becoming more prevalent, with 38% of facilities expected to use it as a primary power source by 2030.
- AI-driven data centers are projected to grow significantly, with median sizes increasing by nearly 115% over the next decade.
- Despite challenges, 95% of respondents maintain sustainability and carbon reduction targets.
Negative Aspects
- Data center developers are underestimating the time required to secure power, with delays of up to two years reported.
- Power availability has become the leading factor in site selection, indicating potential bottlenecks in data center expansion.
Financial Analyst Perspective
From a financial standpoint, Bloom Energy's report highlights a growing market for onsite power solutions, driven by the AI industry's expanding energy needs. The shift towards onsite power generation presents opportunities for Bloom Energy to capitalize on its scalable fuel cell systems. However, the extended timelines for power availability could pose risks to data center projects, potentially affecting investment returns and project viability.
Market Research Analyst Perspective
The report indicates a significant shift in the data center industry's approach to power sourcing, with onsite generation becoming increasingly critical. This trend is likely to drive demand for innovative power solutions that offer reliability and sustainability. Market players, including Bloom Energy, are well-positioned to benefit from this shift, provided they can address the challenges of rapid deployment and cost-effectiveness.
Frequently Asked Questions
What is the main finding of Bloom Energy's mid-year update?
The update reveals that data centers are increasingly adopting onsite power as a primary energy source due to challenges in securing timely electricity from the grid.
How is the AI industry impacting data center power needs?
The AI industry is driving the development of larger, more power-intensive data centers, with median sizes expected to grow by nearly 115% over the next decade.
What role does sustainability play in data center power strategies?
Despite challenges, 95% of respondents continue to prioritize sustainability and carbon reduction targets in their power strategies.
Read the original press release here.
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