AEP Commits $4 Billion to 702MW Bloom Energy Fuel Cell Project Supplying Google

American Electric Power agreed to invest roughly $4 billion in a power plant using Bloom Energy solid-oxide fuel cells to supply electricity to Google, with the project sized at 702 megawatts. The facility, linked to a data center development in Wyoming, marks one of the largest fuel cell commitments on record and directly connects Bloom Energy's technology to the booming AI infrastructure buildout.

Despite the scale of the deal, Bloom Energy shares slid on October 14 as rising oil prices and inflation concerns weighed on the broader energy and growth stock complex. The stock had already rallied sharply on an earlier related disclosure, with shares jumping 15.7% when AEP first revealed a $2.65 billion fuel cell supply agreement with Bloom earlier in the year, at an average selling price of roughly $2,950 per kilowatt.

Separate analysis published the same day argued the stock may be as much as 34% undervalued following a deal known as the Jersey Patch agreement, with a discounted cash flow framework cited as the basis for that gap. The AEP arrangement, which includes an option for up to 1,000 MW of capacity exercised by AEP's unregulated unit, is seen by analysts as the clearest sign yet that large customers are willing to commit serious capital to Bloom's fuel cell platform over the long term.