US hydrogen developer Plug Power has agreed to sell a New York site, originally planned to host a clean hydrogen project, to Stream Data Centers for $132.5 million.

The hydrogen developer entered a definitive agreement to sell its Project Gateway site at the STAMP industrial park in New York, including land, associated infrastructure, and substation assets.

The site has secured grid and substation capacity for hydrogen electrolysis, which will be subsequently used to power the data center.

According to reports, Stream is already in the process of developing data centers at the site, with the acquisition expected to close before the end of June.

The plot was originally envisioned to host a clean liquid hydrogen project, supported by a $1.66 billion loan guarantee from the US Department of Energy (DOE).

However, with federal funding cut off, the company suspended all work at the site last November to reduce its capital commitments. The sale is expected to be the first of three for the company, as it seeks to raise more than $275m to support the growth of hydrogen production.

“By optimizing our assets and unlocking value from existing infrastructure, we are strengthening liquidity, enhancing financial flexibility, and positioning Plug to participate in meaningful infrastructure growth opportunities,” said incoming CEO Jose Luis Crespo.

The company has faced several potential lawsuits over recent months, with plaintiffs accusing the company of overstating its potential to cash in on the DOE’s loan. Plug has yet to comment on the suits.

At the same time, it suspended development at its Project Gateway site, the company announced that it had signed a non-binding Letter of Intent with an unnamed US data center developer as part of a broader effort to strengthen its balance sheet and expand into the data center market. It is unclear whether the unnamed data center was Stream. DCD has reached out for further information.

Founded back in 1997, Plug is one of the oldest hydrogen fuel cell manufacturers in the world. It produces a range of hydrogen-based products, including its stationary GenSure and ProGen fuel cell platforms, which typically range from 100kW to several megawatts, and its PEM electrolyzers, which range from 1MW to 100+MW.

Founded in 1999, Stream’s footprint extends across Texas, Illinois, Minnesota, Colorado, Ohio, Virginia, Iowa, Oklahoma, Georgia, Alabama, and California. The company was recently acquired by Apollo Global Management from Stream Realty Partners.

Hydrogen fuel cells have seen increased uptake across the data center market, driven primarily by the rise of Bloom Energy, which has signed deals with Equinix, Oracle, and major US utility American Electric Power.