Bloom Energy's 900 MW NTT DATA Deal Gives RBC's Bull Case Something to Prove

Bloom Energy shares jumped 10% as investors shifted their focus back to the company's data-center power agreements, a move Reuters linked to a broader market rally as well. The gain puts a spotlight on a simple question: can Bloom turn a growing stack of announced deals into actual deliveries?

Two customer agreements now anchor that question, and both carry hard numbers. NTT DATA confirmed on Thursday a deal covering 900 megawatts of fuel-cell capacity for multiple international data-center projects, with first deliveries slated for 2027. According to NTT DATA, it is Bloom's largest international project to date. A day later came word of an agreement to supply 702 megawatts of fuel-cell capacity to Google's data-center campus in Wyoming — part of a $17 billion investment Google announced in the state, tied to an American Electric Power project that also includes carbon capture and storage. The contract value for the Google deal was not disclosed.

What matters for investors is that both arrangements name a customer and, in NTT DATA's case, a delivery start date. That gives the bull case a concrete operational test rather than a growth narrative alone.

RBC Reaffirms, With a Caveat Attached

Christopher Dendrinos of RBC Capital Markets reiterated his "Outperform" rating and $335 price target, arguing that the midterm election results do not spell the end of data-center demand and pointing to Bloom's positioning in on-site power for those facilities. His view came with a condition, though: the elections could bring more oversight and near-term uncertainty for data-center projects. He did not, however, expect the market to grind to a halt.

That tension defines the investment case. The projects support Bloom if added regulatory scrutiny doesn't materially slow them; the uncertainty Dendrinos flagged argues against assuming a straight-line growth path while the consequences for individual projects remain unclear.

California Adds an Optional Layer

On November 2, California Resources Corporation and Bloom Energy signed a non-binding letter of intent to explore at least 1 gigawatt of power generation using solid-oxide fuel cells paired with carbon capture and storage in California. Potential projects could make up to 3 million tons of CO2 per year available for capture and permanent storage. The non-binding nature is the key detail here — the California plan deserves attention as a possible extension of the business, but the NTT DATA agreement, with its planned delivery start, remains the firmer anchor.

The broader point is that fuel cells now sit at the center of the data-center power debate, and Bloom is involved through the projects named above. Whether oversight concerns end up shaping valuations more than project progress is the question the coming months will answer. Until then, the 2027 start of NTT DATA deliveries is the milestone to watch, and progress on the Google build-out runs a close second.