FuelCell Energy rises 16% on data-center deal, then falls

Shares of FuelCell Energy surged 16% on Wednesday, June 24, after the company announced a major strategic partnership to supply clean power for data centers, but the stock gave back a significant portion of those gains the following day. The company's agreement with Fit Energy USA LP encompasses the potential supply of up to 380 megawatts of power using FuelCell Energy's fuel cell technology, a deal that underscores the growing demand for reliable energy solutions to support artificial intelligence and advanced computing infrastructure.

Under the terms of the agreement, Fit Energy has provided an upfront deposit tied to an initial 30-megawatt deployment expected to begin later this year. The broader framework allows for expansion up to the full 380 MW as additional projects proceed. As an incentive for future deployment, Fit Energy will be eligible to receive warrants linked to achieving specific project milestones.

Company leadership framed the partnership as a validation of their strategic expansion. Jason Few, President and CEO of FuelCell Energy, said the agreement reinforces the company's decision to scale its production capacity to 500 megawatts to serve a growing customer...