Bloom Energy Corp's stock surged 5.13% during intraday trading on Thursday, driven by the announcement of a major partnership with artificial intelligence cloud provider Nebius Group.

The companies have entered into a master fuel cell capacity agreement, under which Nebius will pay up to $2.6 billion over a 10-year term to purchase capacity and electricity generated by Bloom Energy's solid oxide fuel-cell systems. The project, expected to provide approximately 328 megawatts of installed capacity, is slated to come online in phases this year, powering Nebius's AI data center infrastructure.

This deal highlights the critical role of reliable, clean power in the AI boom, as tech companies seek alternatives to constrained electrical grids. Bloom Energy's "behind-the-meter" fuel-cell systems offer a solution that reduces dependence on grid transmission and accelerates the timeline for powering AI facilities. The agreement adds to Bloom Energy's growing order pipeline, which includes recent deals with CoreWeave and Oracle, reinforcing the company's position in meeting surging AI-driven electricity demand.