Hydrogen fuel cell company Plug Power believes that sales of its products to the data center sector will pick up in late 2025.
In an earnings call, first reported by Reuters, the company said that it was working with the largest hyperscalers to trial its product.
"So when you look at the three major data center operators, Plug is engaged and planning some initial deployment and tests with all," Plug's CEO Andrew Marsh said - likely referencing Google, Amazon, and Microsoft.
In 2022, it built a 3MW hydrogen system for Microsoft, which the hyperscaler's director of data center research called "a moon landing moment" for the data center industry. That year, Plug also signed an agreement with the e-commerce side of Amazon for hydrogen to fuel its operations - as part of the deal, Amazon agreed to invest in the business over seven years.
Marsh continued: "The big challenge and the one that we're working through is making sure how you manage hydrogen. And we are working with these customers to really use not only the product as a backup power system, but also to be able to do peak low shaving.
"I think the combination of those two will allow this market to grow. I don't think it's a 2024 event. I think it could be a late 2025 event where you start seeing some deployments at some scale."
Plug has struggled financially after significant supply challenges in the North American hydrogen network, causing the company to raise going concern doubts in 2023. Last week, Plug cleared its going concern doubts.
Preparing for the hydrogen grid
We have heard how great hydrogen will be as an energy source. But how do you get it?
"We made important strides in improving cash management and fostering growth that bolsters cash generation," Marsh said. "We had operational successes, such as expanding our material handling footprint with giants like Walmart, Home Depot, and Amazon, and pioneering with a 1MW electrolyzer system for on-site green hydrogen generation at an Amazon [e-commerce] facility."
Last month, Plug said that it had finalized a term sheet negotiation with the Department of Energy (DOE) for a $1.6 billion loan facility.
"This funding, when received, will support the development, construction, and ownership of up to six hydrogen production facilities, significantly advancing green hydrogen deployment in the United States," Marsh said at the time.
