FuelCell Energy Scales Up for Data Centers with Packaged 12.5 MW Utility‑Grade Power Block Solution and Manufacturing Expansion Plans
DANBURY, Conn., March 23, 2026 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc. (NASDAQ:FCEL) is taking significant steps toward meeting the speed of delivery and surging demand of data centers for on-site, utility‑scale continuous power.
With power availability increasingly limiting the pace of AI and data center expansion, FuelCell Energy is introducing standardized packaged 12.5‑megawatt (MW) power blocks to enable faster deployment in grid-constrained markets.
Grid congestion, interconnection backlogs, and permitting delays increasingly slow data center construction. As a result, developers are looking for ways to secure reliable power without waiting on utility infrastructure.
FuelCell Energy's packaged, standardized, and scalable 12.5 MW on-site power system addresses that bottleneck directly, enabling large data center projects to move forward faster in power‑constrained markets or simply when data center customers realize the value of on-site power generation and their commitment to bring their own power.
The company also said it plans to expand manufacturing capacity by more than three times over time at its Torrington, Conn., facility from approximately 100 to 350 MW to meet expected demand. FuelCell Energy's business development pipeline has increased by 275% since February 2025, with the vast majority of the increase coming from data center customers.
FuelCell Energy will highlight the new 12.5 MW offering at DCD>Connect New York on March 24 as part of industry discussions on faster, cleaner approaches to powering data centers.
A Standardized 12.5 MW Power Block
For data center developers, one of the biggest hidden costs and delays in on-site power is having to design, permit, install, and integrate supporting infrastructure — the balance of plant — over and over again as projects scale. This includes electrical distribution, controls, cooling, enclosures, site layout, and commissioning.
By packaging 10 proven 1.25 MW modules into a standardized 12.5 MW block, FuelCell Energy:
- Reduces site‑specific engineering and permitting work
- Reduces integration risk
- Speeds deployment
- Improves reliability for large, multi‑phase builds
Similar to how utilities add power in large, standardized increments, the 12.5 MW FuelCell Energy Block applies that same approach to on-site data center power, reducing repeated engineering and integration as projects scale without the need for high voltage transmission and other costly infrastructure when centralized at the utility.
"The challenge facing data centers today isn't just how much power they need — it's how quickly they can get it, and if the power they buy today will provide the power they need tomorrow" said Jason Few, President and Chief Executive Officer of FuelCell Energy. "We've already shown that distributed baseload power can operate reliably at scale. What's changed is urgency. As AI growth collides with grid constraints and other power sources not built for the evolving world of digital intelligence, customers need infrastructure‑grade solutions that let them move forward now and years from now."
Few said the initial investments in the Torrington manufacturing expansion will prepare the company for anticipated demand and will leverage a predominantly U.S. supply chain, proven electrochemistry that doesn't use rare earth materials, and more than 23 years of manufacturing and operating experience. Capital has been allocated this year for long‑lead items such as high‑capacity equipment.
FuelCell Energy is also pursuing a hub‑and‑spoke manufacturing model to reduce costs and localize final assembly, similar to its approaches in South Korea and Germany.
What Buyers Are Asking For
Eric Strayer, Senior Vice President and Head of Global Sales, said the 12.5 MW Block reflects what data center customers say they are looking for as they search for on-site power options.
"Customers want fast, phased deployment," Strayer said. "Our 12.5 MW Block provides an ideal balance, delivering both economies of scale and modular reliability. By implementing these solutions at our customers' sites, we give them a reliable platform that can grow over time — without the challenges of connecting multiple smaller systems."
FuelCell Energy will now offer three core product blocks for data centers, with the option to add others over time. They are:
- FuelCell Energy Block 1.25 MW System
An integrated 1.25 MW fuel cell power system. - FuelCell Energy Block 2.5 MW System
A single, integrated 2.5 MW fuel cell power system comprised of two 1.25 MW modules. - FuelCell Energy Block 12.5 MW System
A 12.5 MW integrated installation comprised of five independently operating 2.5 MW fuel cell systems, supported by shared balance-of-plant infrastructure.
How It's Different
Unlike combustion‑based generators, FuelCell Energy's systems produce power electrochemically, resulting in quiet operation and low air emissions — key advantages for data centers facing permitting and siting constraints.
The technology's heat‑driven cooling reduces the need for supplemental cooling infrastructure, allowing a greater proportion of electricity to be allocated directly to IT operations. In a fixed power capacity environment, every megawatt not spent on cooling can be reassigned to revenue‑generating compute.
Designed as a standardized building block, the 12.5 MW system can be deployed individually or aggregated across campuses, allowing data center operators to add capacity in phases while relying on a platform with a long operating track record.
Bottom Line
By delivering proven, continuous power directly at the site, FuelCell Energy's 12.5 MW solution reduces uncertainty around timelines, infrastructure readiness, and grid availability — helping align power delivery with the pace of AI-driven development.
Kent McCord, Director of Solutions Engineering, will lead a "Tech Showcase" at DCD>Connect New York demonstrating how distributed baseload power can support data‑intensive facilities. He and other FuelCell Energy team members will be available to meet with developers, operators, partners, and media. Renderings of the FuelCell Energy Block 12.5 MW System can be downloaded here.
About FuelCell Energy
FuelCell Energy, Inc. (NASDAQ:FCEL) is an American clean energy technology company delivering continuous, scalable baseload power for mission-critical applications globally. The company's fuel cell systems generate electricity directly at the point of use, enabling reliable, low-emissions power for data centers, industrial facilities, utilities, and distributed generation customers. FuelCell Energy delivers commercially proven, modular, utility scales systems—backed by global fuel cell deployments approaching one gigawatt. Learn more at www.fuelcellenergy.com.
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