FuelCell Energy Powers South Korea's AI Future With New Data Center Deal

FuelCell Energy Inc. FCEL on Thursday announced that it has joined forces with AI infrastructure developer Inuverse to explore the phased deployment of up to 100 megawatts of fuel cell power at South Korea's forthcoming AI Daegu Data Center (AI DDC).

The companies signed a non-binding memorandum of understanding to begin phased implementation in 2027. Inuverse aims for the facility to become Korea's largest data center, incorporating advanced cooling technologies like thermal-driven absorption chillers and a clean waste system. These features are expected to improve energy efficiency and reduce operational costs using excess heat from FuelCell's platforms.

FuelCell, known for its modular and emission-reducing systems, already operates a 58MW fuel cell park in Korea. The collaboration with Inuverse marks a broader push into the Asian market and supports the region's digital infrastructure expansion.

Also Read: FuelCell Stock Is Trading Higher Wednesday: What’s Fueling The Move?

Mike Hill, executive vice president at FuelCell, said the initiative reflects the company’s commitment to South Korea and provides scalable energy tailored for the growing demands of AI data operations. Inuverse executive David Kim added that the project aligns with ESG goals and could become a global benchmark for sustainable data centers.

As AI and cloud services strain power systems, Inuverse seeks energy solutions that can be deployed quickly without altering how data centers function. FuelCell's clean, on-site power offerings are positioned to support this new wave of infrastructure development.

In June, FCEL reported a 67% year-over-year revenue increase in Q2, boosted by stronger product and service sales. Despite continued losses, operating expenses fell due to cost cuts, and the company outlined a new global restructuring plan to streamline operations and focus on its core carbonate fuel cell technology.

The plan includes a 22% workforce reduction, scaling back solid oxide development, and aligning production with contracted demand to target profitability. CEO Jason Few emphasized the company's commitment to serving data centers, distributed power needs, and carbon capture markets amid rising policy support for natural gas.

Related ETFs: Global X CleanTech ETF CTEC, iShares Global Clean Energy ETF ICLN.

Price Action: FCEL shares are trading higher by 9.34% to $6.123 at the last check Thursday.

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