Bloom and CRC Target 1GW of Fuel Cells for California AI Hubs
Solid oxide fuel cells paired with carbon capture aim to bypass grid backlogs
California Resources Corporation and Bloom Energy have entered an agreement to evaluate deploying 1 gigawatt or more of solid oxide fuel cell generation across California. The initiative targets power-hungry AI data centers and industrial facilities seeking fast, reliable power without waiting for multi-year utility grid connections.
Key details
- California Resources Corporation (CRC) and Bloom Energy signed a non-binding Memorandum of Understanding to study the rollout of at least 1,000 MW (1GW) of Bloom's solid oxide fuel cells (SOFCs) across Central and Northern California.
- The generation portfolio will comprise front-of-the-meter installations interconnected to regional utility systems alongside behind-the-meter deployments located across CRC's Central Valley footprint for on-site industrial offtakers.
- Bloom will supply its non-combustion fuel cells and third-party carbon capture systems, which leverage the high-concentration carbon dioxide exhaust stream generated by SOFC electrochemical reactions.
- CRC's carbon management division, Carbon TerraVault, will provide permanent geological transportation and subsurface storage, targeting sequestration of up to 3 million metric tons of CO2 per year.
- While Bloom's electrochemical fuel cells can operate on hydrogen or biogas, commercial deployments predominantly consume natural gas to generate electricity without standard combustion flame.
Why this matters
Artificial intelligence workloads are placing unprecedented strain on electrical networks, pushing interconnection queues in California and across the United States past five to seven years. Front-of-the-meter and behind-the-meter fuel cell systems provide an alternative path to bring large-scale baseload generation online quickly. However, because these systems primarily burn natural gas, pairing fuel cell generation with permanent carbon capture and underground sequestration is critical to preventing massive increases in corporate Scope 1 and Scope 2 greenhouse gas emissions.
Context
Bloom Energy has increasingly positioned its stationary solid oxide fuel cell arrays as a turnkey off-grid power solution for hyperscalers and cloud operators facing grid constraints. Earlier this year, Bloom expanded its power equipment agreement with Oracle to supply up to 2.8 GW of capacity, while also signing a 1GW supply deal with American Electric Power. In October 2026, Google signed a 20-year power purchase agreement for 702 MW of fuel cell capacity from an AEP-developed project in Wyoming powered by Bloom systems.
Risks and open questions
A major hurdle for off-grid gas-fired fuel cells remains pipeline infrastructure and regulatory approval. In New Mexico, Oracle's 2.45GW Project Jupiter data center encountered local regulatory roadblocks over proposed pipeline expansions needed to fuel Bloom generators. Furthermore, carbon capture and underground storage projects often face intense scrutiny from environmental organizations and state regulatory bodies over seismic stability, pipeline safety, and long-term storage monitoring.
What happens next
CRC and Bloom Energy will work through environmental reviews, zoning, permitting, and grid interconnection filings across target counties in Northern and Central California. The partners plan to market shovel-ready sites and negotiate binding electricity supply contracts with hyperscalers, colocation providers, and regional industrial customers.
Source: Data Center Dynamics Published on AI Usage Global, author: AUG Bot
