FuelCell Energy and Inuverse Sign MOU for Data Center Development in Korea, Signaling Growth in Hyperscale and AI Markets
Rhea-AI Summary
FuelCell Energy (Nasdaq: FCEL) has signed a strategic Memorandum of Understanding (MOU) with Inuverse to explore deploying up to 100 megawatts (MW) of fuel cell-based power at Korea's AI Daegu Data Center (AI DDC). The phased deployment is set to begin in 2027.
The project aims to leverage FuelCell's thermal energy capabilities for advanced rack cooling and absorption chilling at the data center. The company's technology offers clean baseload energy in a microgrid configuration, with modular systems designed for rapid deployment to support AI and cloud computing needs.
FuelCell Energy currently operates Korea's largest single-site fuel cell park at 58MW, demonstrating its established presence in the region. The non-binding MOU represents a strategic move into the growing AI-specialized hyperscale data center market while supporting renewable energy and ESG objectives.
Positive
- Potential deployment of up to 100MW fuel cell-based power system
- Strategic entry into growing AI data center market
- Proven track record with 58MW operation in Korea
- Thermal energy capabilities can reduce cooling costs and improve efficiency
- Modular design allows for rapid, scalable deployment
Negative
- MOU is non-binding with no guaranteed commitments
- Project deployment not starting until 2027
- Significant capital investment likely required for implementation
Insights
FuelCell Energy's 100MW Korean data center MOU represents strategic positioning in high-growth AI infrastructure market with thermal efficiency advantages.
FuelCell Energy's non-binding MOU with Inuverse marks a significant strategic positioning in the rapidly expanding AI data center market. The potential 100MW deployment would substantially expand FCEL's Korean footprint beyond their current 58MW single-site operation, representing meaningful future revenue opportunity. What makes this partnership technically compelling is the thermal integration advantage - using waste heat from fuel cells to power absorption chilling systems that cool data centers, creating a dual-value proposition that addresses both power generation and cooling requirements.
The AI Daegu Data Center's phased implementation beginning in 2027 indicates this isn't an immediate revenue driver but rather positions FCEL for the long-term growth trajectory of AI infrastructure. FCEL's modular approach offers crucial flexibility for the uncertain capacity scaling needs typical of hyperscale facilities. The company's existing Korean operations provide critical proof-of-concept for reliability in this market.
From a sustainability perspective, the fuel cell technology could help Inuverse meet ESG objectives through baseload power with lower emissions than traditional grid energy, though not completely carbon-free depending on fuel source. The microgrid capabilities mentioned address the critical need for uninterrupted power that AI workloads demand, potentially providing competitive advantage over intermittent renewable alternatives in this application.
Integrated fuel cell thermal capabilities can reduce cooling costs and boost energy efficiency
DANBURY, Conn. and SEOUL, South Korea, July 10, 2025 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc. (Nasdaq: FCEL) and Inuverse, a developer of next-generation AI-specialized hyperscale data centers, have announced a strategic Memorandum of Understanding (MOU) to explore opportunities to deploy up to 100 megawatts (MW) of fuel cell-based power in phased increments starting in 2027 at the AI Daegu Data Center (AI DDC), which Inuverse is in the process of developing, aspiring for it to become Korea’s largest data center.
Once developed, AI DDC is expected to feature advanced rack cooling, hot zone optimization, absorption chilling enabled by the thermal energy from FuelCell Energy’s platform, and a clean waste model that reduces operational costs and improves performance. FuelCell Energy has demonstrated its ability to utilize the thermal energy from the company’s fuel cells to drive absorption chilling at other locations and anticipate it will serve data center requirements for space cooling.
FuelCell Energy builds and delivers firm, clean, energy through high-efficiency fuel cell platforms, which can help data centers meet today’s energy and climate goals without disruption, downtime in a microgrid configuration, or changing how data centers operate. We believe our clean baseload energy technology would allow the project to redefine what is possible for sustainable digital transformation.
Rapid Deployment
FuelCell Energy’s systems are designed for rapid deployment—capable of delivering modular, phased, onsite power in months rather than years—which can be scaled as project demand grows. This flexibility is critical in supporting the significant energy needs of AI and cloud computing.
FuelCell Energy already operates the largest single-site fuel cell park in Korea, totaling 58MW, which demonstrates the commercial readiness and reliability of its technology. The collaboration with Inuverse is expected to expand the company’s footprint in Asia and showcase the company’s ability to enable the decarbonization and near elimination of particulate emissions in the digital economy through distributed clean energy.
“Our clean, reliable, and scalable platform is purpose-built for the data center market,” said Mike Hill, Executive Vice President and Chief Commercial Officer of FuelCell Energy. “With proven scaled energy platforms already operating in Korea, and integrated thermal capabilities that align seamlessly with Inuverse’s cooling needs, we’re proud our technology could be used to support this transformative infrastructure project. Together, we’re enabling a digital ecosystem that is expected to drive innovation and regional growth in Korea.”
Hill added, “We believe the execution of this non-binding MOU is a strong endorsement of our technology’s ability to meet the evolving demands of data centers and underscores our commitment to the Korean market.”
David Kim, Executive Vice President and Chief Business Development Officer of Inuverse, said, “This collaboration is pivotal for Inuverse to address the surging data processing demands of the AI era while proactively achieving our renewable energy and ESG objectives. We believe this project will set global ESG standards for data centers.”
About FuelCell Energy
FuelCell Energy, Inc. provides clean, reliable future-ready solutions that allow customers to access power faster and manage their emissions while keeping their operations running. Our efficient, scalable, and fuel-flexible systems—running on natural gas, biofuels, or hydrogen—provide steady baseload, grid-independent electricity worldwide. With more than 55 years of expertise and nearly 200 modules in commercial operation, we help customers achieve their immediate and future energy goals. Learn more at www.fuelcellenergy.com.
Contact:
FuelCell Energy Investor Relations
ir@fce.com
FuelCell Energy Media Relations
kblomquist@fce.com
About Inuverse
AI Daegu Data Center (AI DDC) is spearheading the future of hyperscale, sustainable AI infrastructure, driving the RE100 vision with the development of a next-generation Data Center Valley. This initiative positions South Korea as a premier global hub for AI and cloud-driven digital infrastructure. In collaboration with KEPCO (Korea Electric Power Corporation), AI DDC is revolutionizing energy design by integrating carbon-neutral power solutions, ensuring net-zero emissions while maintaining unmatched reliability and scalability. Learn more at www.inuverse.co.kr.
Contact:
info@inuverse.co.kr
Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 regarding future events or the Company’s future performance that involve certain contingencies and uncertainties. The forward-looking statements include, without limitation, statements regarding the Company’s business plans and strategies, the capabilities of the Company’s products, the markets in which the Company expects to operate, and the development of, and demand for, the Company’s products. These forward-looking statements are not guarantees of future performance, and all forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could cause such a difference include, without limitation, the risk that the Company’s restructuring plan, revised strategic plan, and workforce reduction will not result in the intended benefits or savings; the Company’s ability to reduce operating costs; and the other risks set forth in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2024 and the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2025. The forward-looking statements contained herein speak only as of the date of this release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement contained herein to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based.
FAQ
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