American Electric Power Co. has announced a strategic partnership with Bloom Energy Corp. to deploy up to 1 gigawatt of fuel cells for supplying power to data centers. This move comes as the utility sector faces escalating demand for electricity from various sources like data centers, manufacturing plants, and electric vehicles. With traditional power plant construction and grid upgrades taking considerable time, the adoption of Bloom Energy's fuel cells provides a swift alternative to meet immediate power needs. The electrochemical reaction-based fuel cells can be installed rapidly, making them an attractive choice for high-power-demanding facilities such as AI data centers. Despite running on natural gas initially, Bloom's fuel cells offer the flexibility to switch to hydrogen, ensuring zero greenhouse gas emissions when operating on hydrogen. This feature aligns well with the sustainability targets of data center operators, allowing them to achieve climate goals effectively. The agreement between AEP and Bloom Energy signifies a significant milestone in advancing fuel-cell technology adoption as a reliable power solution, especially in scenarios where traditional grid infrastructure faces regulatory hurdles and permitting challenges. The financial terms of the partnership remain undisclosed, with the first customers set to cover project costs.