A partnership has been announced between American Electric Power Co. (AEP) and Bloom Energy Corp. to deploy fuel cells for data centers.

This collaboration aims to address the increasing demand for electricity in the utility sector. AEP plans to utilize up to 1 gigawatt of Bloom's fuel cells, which generate power through an electrochemical process instead of traditional combustion methods. This innovative approach allows for faster installation compared to conventional electric grid upgrades, providing a timely solution for powering artificial intelligence data centers that require substantial energy, comparable to that of entire towns.

AEP's strategic move to enhance its service offerings is in response to the escalating energy needs of the technology sector.