Bloom Energy Partners with CoreWeave to Power AI Data Centers
- Morgan Stanley has expressed confidence in Bloom Energy following its recent partnership with CoreWeave, a company that provides GPU cloud services backed by Nvidia.
- This strategic alliance is expected to enhance Bloom Energy's capabilities in artificial intelligence.
- As AI technology continues to evolve, collaborations like this could significantly impact the energy sector.
Bloom Energy, a San Jose-based green energy company, is gaining attention as a promising player in the artificial intelligence sector, according to Morgan Stanley analyst Andrew Percoco. Following the announcement of a strategic partnership with CoreWeave, a GPU cloud provider backed by Nvidia, Percoco reiterated his overweight rating on Bloom Energy, setting a price target of $22 per share, which suggests a potential increase of nearly 44% from its recent closing price. The partnership will see Bloom Energy deploy its solid oxide fuel cells to generate power for CoreWeave's data center in Illinois, with commissioning expected in the third quarter of 2025. Percoco emphasized that this collaboration highlights the effectiveness of solid oxide fuel cells in addressing the power needs of data centers, particularly in the context of AI advancements. Bloom Energy's shares have already seen a 3.2% increase this year, with a notable 9% rise just this week. In addition to the CoreWeave deal, Bloom Energy has been actively expanding its footprint in the data center market. Recently, the company entered an agreement with Amazon to deploy 20 megawatts of fuel cells for an Amazon data center, and in May, it partnered with Intel to support the chipmaker's data center expansion in Santa Clara, California. Percoco anticipates that Bloom Energy's future announcements will involve larger projects as it secures more agreements with major tech companies.