FuelCell Energy’s data center pipeline has grown to 10 gigawatts as it ramps up production in Torrington.
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Danbury-based FuelCell Energy is seeing a surge of interest from data center developers seeking new sources of electricity, with its pipeline of potential projects reaching about 10 gigawatts as the company works to expand production at its Torrington manufacturing plant.
The sales pipeline was 4 gigawatts at the end of the second quarter, up from about 1.5 gigawatts earlier this year.
The company also disclosed Tuesday that a major data center operator made an upfront payment to reserve fuel cell equipment for a planned 75-megawatt project in Texas — FuelCell’s first such agreement. The announcement follows FuelCell’s June agreement with Fit Energy USA LP for up to 380 megawatts of fuel cell systems for data center applications.
FuelCell is ramping up production in Torrington, where it expects to be producing fuel cell equipment at a pace equivalent to 100 megawatts annually by October. The company plans to expand the plant’s annual production capacity to 500 megawatts by June 2028, at an estimated cost of $200 million to $275 million.
During the third quarter, however, the facility operated at a production rate equivalent to about 37.1 megawatts annually.
The company still faces significant financial challenges.
FuelCell reported a third-quarter net loss of $45.3 million, or 64 cents per share, for the quarter ended July 31, compared with a loss of $91.9 million, or $3.78 per share, a year earlier. The prior-year quarter included a $64.5 million impairment charge related to the company’s solid oxide technology investments.
Third-quarter revenue fell 29% to $33 million, primarily because of fewer fuel cell deliveries to South Korean customers and lower output from FuelCell’s generation portfolio.
The company said its 7.4-megawatt Groton project at the U.S. Navy’s submarine base was offline during the quarter due to an equipment upgrade.
The company raised $245.5 million in net proceeds from a public stock offering completed July 9. It said the money will be used for manufacturing expansion, working capital and general corporate purposes.
FuelCell also completed delivery of six fuel cells during the quarter for the Gyeonggi Green Energy project in South Korea, bringing its total deliveries under the project to 42 modules since 2024.
