Sustainable Development Capital LLP and FuelCell Energy Forge Strategic Data Center Power Collaboration

Rhea-AI Summary

Sustainable Development Capital and FuelCell Energy (Nasdaq: FCEL) announced a strategic collaboration on Jan 20, 2026 to explore deploying up to 450 megawatts of fuel-cell power systems to support data-center growth and other mission-critical distributed power needs globally.

The partnership pairs FuelCell Energy’s continuous, behind-the-meter direct DC-capable fuel-cell platform with SDCL’s experience financing and operating large-scale energy infrastructure. The companies executed a letter of intent to work together on solutions that target availability, resilience, lower emissions versus combustion generation, and potential thermal reuse (for example absorption chilling) to improve data-center efficiency.

Positive

• Up to 450 MW target for distributed fuel-cell capacity
• Combines FuelCell Energy’s continuous, behind-the-meter direct DC-capable platform with SDCL financing expertise
• Potential to reduce emissions versus combustion-based generation through electrochemical power generation
• Thermal reuse option (waste heat for absorption chilling) to potentially lower data-center electrical load and improve PUE

Negative

• Collaboration is currently structured via a letter of intent outlining plans rather than announced firm contracts
• On-site independence depends on reliable fuel supply and site-specific backup/start-up arrangements
• System performance (local pollutants and efficiency) is dependent on configuration, operating conditions, and fuel type

Key Figures

Planned fuel-cell capacity: up to 450 megawatts Data center DC architecture: 800-volt DC power

2 metrics

Planned fuel-cell capacity up to 450 megawatts Potential deployments under collaboration with SDCL

Data center DC architecture 800-volt DC power Targeted centralized power architecture for data centers

Market Reality Check

Price: $8.64 Vol: Volume 3,281,028 vs 2,733...

normal vol

$8.64 Last Close

Volume Volume 3,281,028 vs 2,733,367 20-day average (relative volume 1.2x). normal

Technical Trading above 200-day MA of 6.27 at a price of 8.04, up 7.92% pre-news.

Peers on Argus

FCEL gained 7.92% while only one momentum-scanner peer, NEOV, showed an uptick o...

1 Up

FCEL gained 7.92% while only one momentum-scanner peer, NEOV, showed an uptick of about 4.36% without news, and broader peer moves were mixed. This points to a company-specific reaction to the AI-focused data center power collaboration rather than a broad sector rotation.

Historical Context

5 past events · Latest: Jan 12 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 12	Leadership change	Neutral	-0.4%	Appointment of new General Counsel and Corporate Secretary with sector experience.
Dec 18	Earnings results	Positive	+22.0%	FY2025 revenue growth, improved margins, and focus on data center strategy.
Dec 04	Earnings call notice	Neutral	+12.5%	Announcement of date and details for Q4 and FY2025 results conference call.
Dec 01	Project financing	Positive	-4.5%	Closing of about $25M EXIM debt financing for Korean fuel cell project.
Nov 03	Sector commentary	Neutral	-7.3%	Research coverage on Charbone in hydrogen space, not directly on FuelCell Energy.

Pattern Detected

Recent fundamentally positive updates (earnings growth, financing) often saw sharp moves, with one notable divergence where positive financing news coincided with a price drop.

Recent Company History

Over the last few months, FuelCell Energy has reported several developments. On Dec 18, 2025, FY2025 results showed revenue of $158.2M (+41% YoY) and backlog of $1.19B, with the stock rising 22.03%. Earlier in December, an EXIM financing of about $25M to support a Korean project saw shares slip 4.47%, indicating occasional divergence from positive fundamentals. Leadership and governance updates, including the appointment of a new General Counsel, had muted price impact. Today’s AI data-center collaboration fits the ongoing pivot toward data-center and infrastructure partnerships.

Market Pulse Summary

This announcement outlines a strategic collaboration with SDCL to explore deploying up to 450 MW of ...

Analysis

This announcement outlines a strategic collaboration with SDCL to explore deploying up to 450 MW of fuel-cell systems for data centers and other critical loads, tying directly into FuelCell Energy’s stated data-center focus. It emphasizes reliable on-site generation, potential efficiency gains such as improved PUE, and readiness for 800‑volt DC architectures. In evaluating its importance, investors may watch for binding agreements, project-level financing milestones, and how these deployments compare to the company’s existing production capacity and backlog.

Key Terms

distributed generation, baseload power, behind-the-meter, Power Usage Effectiveness (PUE), +1 more

5 terms

distributed generation technical

"Accelerating distributed generation deployment with world-class project execution capability"

Electricity produced close to where it is used rather than at a large, central power plant—examples include rooftop solar, small wind turbines, and local gas generators. For investors, distributed generation matters because it can change how power is bought and sold, reduce demand for traditional utility services, create new revenue streams for installers and technology providers, and expose assets to different regulatory and reliability risks, like a neighborhood adding many home solar systems.

baseload power technical

"FuelCell Energy’s proven distributed baseload power technology, capable of delivering reliable"

Baseload power is the consistent, reliable electricity output that a power plant or source can provide around the clock to meet the minimum demand on the grid, similar to a factory that runs steadily to keep essential machines humming. For investors, baseload capacity matters because it tends to produce predictable revenue, supports grid stability, and reduces the risk that production will be sidelined when demand dips, making assets and contracts tied to it easier to value.

behind-the-meter technical

"onsite or behind-the-meter power solutions are increasingly evaluated alongside traditional grid"

Equipment or systems located on a customer’s side of the electricity meter—such as rooftop solar panels, battery storage, electric vehicle chargers, or energy controls—that generate, store, or manage power for use on-site rather than being supplied through the utility’s grid. Investors care because behind-the-meter assets change how much power a customer buys, can create new revenue or savings streams, affect demand patterns, and shift regulatory or business models in the energy market, much like a homeowner installing their own water tank reduces municipal supply needs.

Power Usage Effectiveness (PUE) technical

"may improve data center efficiency, including Power Usage Effectiveness (PUE)."

Power Usage Effectiveness (PUE) is a simple ratio that compares the total energy consumed by a data center (including cooling, lighting and other facility systems) to the energy used solely by the servers and networking equipment. For investors, a lower PUE means less energy is wasted — like a car that gets more miles per gallon — which usually translates into lower operating costs, smaller sustainability risks and a clearer picture of infrastructure efficiency.

nitrogen oxides (NOx) medical

"pollutants typically associated with combustion-based generation (for example nitrogen oxides (NOx)"

Nitrogen oxides (NOx) are a group of reactive gases produced when fuels burn at high temperatures, similar to the smoky gases coming off a campfire but from engines, smokestacks or industrial furnaces. Investors care because NOx emissions drive regulatory limits, pollution-control costs, permit requirements and potential fines, and can affect a company's operating expenses, capital investments and public reputation if reductions are required or violations occur.

AI-generated analysis. Not financial advice.

Accelerating distributed generation deployment with world-class project execution capability

DANBURY, Conn., Jan. 20, 2026 (GLOBE NEWSWIRE) -- Sustainable Development Capital LLP (SDCL) and FuelCell Energy, Inc. (Nasdaq: FCEL) today announced a strategic collaboration to explore the deployment of up to 450 megawatts of advanced fuel-cell power systems to support data center growth and other mission critical distributed power needs globally.

The collaboration reflects a shared view that AI is forcing a fundamental redesign of data-center power architectures. AI is not just increasing power demand, it is changing the nature of power demand, requiring highly reliable, scalable, and resilient on-site generation solutions capable of supporting always-on, compute-intensive workloads.

The planned collaboration integrates FuelCell Energy’s proven distributed baseload power technology, capable of delivering reliable, high-availability power close to load centers, with SDCL’s experience in financing and operating scalable energy infrastructure. The two companies have executed a letter of intent outlining their plans to work together to support energy solutions that enhance availability, resilience, and cost competitiveness in energy-intensive applications.

The collaboration reflects a broader trend in data center development where onsite or behind-the-meter power solutions are increasingly evaluated alongside traditional grid supply to address delivery timelines, grid constraints, and decarbonization goals. It also underscores the importance of partnering with organizations that have deep experience deploying large-scale energy infrastructure efficiently and reliably.

“At SDCL, we invest in energy efficient infrastructure that delivers long-term value while supporting the evolution to a cleaner energy system,” said Jonathan Maxwell, Chief Executive Officer of SDCL. “We believe that FuelCell Energy’s technology aligns well with that vision, offering reliable, high-availability power with significantly lower emissions. Its flexibility and efficiency make it particularly attractive for data centers, where resilience and sustainability increasingly need to go hand in hand.”

“As AI and high-performance computing scale, power is no longer just about more capacity—it’s about a different architecture,” said Jason Few, President and Chief Executive Officer of FuelCell Energy. “With clear cost, efficiency and power density advantages, the industry is moving toward centralized, 800-volt DC power for data centers. FuelCell Energy natively generates continuous, megawatt-scale direct DC power behind the meter, delivered today through AC-coupled systems and architecturally ready for 800-volt DC designs. Importantly, customers can deploy our systems today in AC configurations and transition to DC over time without replacing the core power modules, preserving flexibility as architectures evolve.”

Few added, “In addition, our platform can facilitate the productive use of thermal energy where waste heat is captured and used for applications such as absorption chilling, reducing overall electrical load and may improve data center efficiency, including Power Usage Effectiveness (PUE). Our collaboration with SDCL brings together a differentiated technology platform and a partner with deep experience financing and operating projects at scale, creating a pathway to deploy up to 450 megawatts of distributed fuel-cell capacity to support data-center growth and other mission-critical power needs.”

FuelCell Energy’s advanced power systems are designed to deliver continuous, on-site power and can operate independently of the electricity grid during normal running, subject to reliable fuel supply and any site-specific backup/start-up arrangements. The systems are designed to minimize local air pollutants typically associated with combustion-based generation (for example nitrogen oxides (NOx), sulphur oxides (SOx) and particulate matter (PM)), with performance dependent on configuration, operating conditions and fuel type. Because electricity is generated electrochemically rather than by combustion, these platforms can provide a reliable, resilient on-site generation option for a range of commercial and industrial applications.

About Sustainable Development Capital LLP

SDCL develops, invests in and operates efficient and decentralized generation of energy infrastructure solutions in the United States, the UK and Europe. Established in 2007, SDCL invests capital that it has raised in public and private markets in projects that provide essential on-site energy services under long-term contracts to commercial and industrial, district energy and data center customers, in markets where energy savings are most material and economically attractive. Its current assets under management are c. US$2.5 billion. Learn more at www.sdclgroup.com.

About FuelCell Energy

FuelCell Energy, Inc. delivers clean, reliable, future-ready power solutions designed to accelerate time-to-power, reduce emissions, and support operational continuity. With more than 55 years of expertise and more than 600 modules deployed globally since 2003, FuelCell Energy’s efficient, scalable, and fuel-flexible systems deliver baseload electricity close to where it’s needed — helping customers meet both immediate and future energy goals. Learn more on our website here.

Contact:

Media Relations
FuelCell Energy: KBlomquist@fce.com
SDCL: Henry.Crane@cardewgroup.com

FuelCell Energy Investor Relations
ir@fce.com

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, 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

What did FuelCell Energy (FCEL) and Sustainable Development Capital announce on January 20, 2026?

They announced a strategic collaboration and executed a letter of intent to explore deploying up to 450 MW of fuel-cell power systems for data centers and mission-critical power.

How could the proposed FCEL and SDCL collaboration affect data-center power architecture?

The collaboration targets reliable, on-site generation with direct DC-capable fuel-cell systems and thermal reuse to boost resilience and potentially improve Power Usage Effectiveness (PUE).

Does the FCEL technology support 800-volt DC data-center architectures today?

FuelCell Energy natively generates continuous, megawatt-scale direct DC power and is delivered today through AC-coupled systems while being architecturally ready for 800-volt DC designs.

Is the 450 MW figure a confirmed sale or a target in the FCEL and SDCL announcement?

The companies described plans to explore deployment of up to 450 MW and have executed a letter of intent outlining their collaboration.

What operational limitation did FuelCell Energy note for independent on-site operation?

Systems can operate independently of the grid during normal running subject to reliable fuel supply and any site-specific backup/start-up arrangements.