US fuel cell developer FuelCell Energy has launched a modular power block tailored for the data center market.

The 12.5MW power blocks are comprised of ten 1.25MW modules. The company claims that the solution will support data centers to secure power much more quickly by reducing site-specific engineering and permitting work and improving overall reliability for large multi-phase builds.

“The challenge facing data centers today isn’t just how much power they need — it’s how quickly they can get it, and if the power they buy today will provide the power they need tomorrow,” said Jason Few, president and CEO of FuelCell Energy. “We’ve already shown that distributed baseload power can operate reliably at scale. What’s changed is urgency. As AI growth collides with grid constraints and other power sources not built for the evolving world of digital intelligence, customers need infrastructure‑grade solutions that let them move forward now and years from now.”

To support demand from the data center market, the company has said it will expand manufacturing capacity at its Torrington, Connecticut, facility by more than three times, from approximately 100MW to 350MW, to meet expected demand. The company claims that its business development pipeline has increased by 275 percent since February 2025, with the vast majority of the increase coming from data center customers.

“Customers want fast, phased deployment,” Eric Strayer, senior vice president and head of global sales, said. “Our 12.5MW Block provides an ideal balance, delivering both economies of scale and modular reliability. By implementing these solutions at our customers’ sites, we give them a reliable platform that can grow over time — without the challenges of connecting multiple smaller systems.”

Following the launch, the company now offers three core products to the data center market, including a 1.25MW system, a 2.5MW system, and a 12.5MW system. According to FuelCell Energy, its carbonite fuel system is designed to deliver onsite baseload power and can supply power independently of the electrical grid during normal operations.

The company has already signed two deals in the space. In January, it partnered with investment company Sustainable Development Capital (SDC) to explore deploying up to 450MW of fuel cell power systems to support global data center growth. Before this, it partnered with AI data center developer Inuverse to explore deploying up to 100MW of fuel cell power at a data center in Daegu, South Korea.

Fuel cells are gaining popularity within the data center market, offering a lower-carbon solution for developers seeking dispatchable power.

The biggest player in the sector is Bloom Energy, which has signed a number of deals to power data centers within the US market. To date, it has signed agreements with AEP Ohio, Equinix, and Oracle to power data centers through its fuel cell technology.