American Electric Power is offering large customers a custom solution to support their growing energy needs with fuel cell technology. AEP has an agreement in place to secure up to 1 gigawatt (GW) of Bloom Energy solid oxide fuel cells for data centers and other large energy users who need to quickly power their operations while the grid is built out to accommodate demand. This is the largest utility fuel cell technology initiative in the nation.

AEP expects commercial load to grow an average of 20% annually over the next three years, driven by data center development. The company is in the process of finalizing the first customer project agreements. Discussions are taking place with several other customers about using this technology to provide additional power to their sites while AEP makes the needed grid investments for the long term. All costs for the fuel cell projects will be covered by the large customers under a special contract.

"The rapid increase in energy demand is a challenge that AEP is tackling by finding innovative solutions to meet the unique needs of our customers," said Bill Fehrman, AEP president and chief executive officer. "These fuel cells will help provide data centers and other large customers with the power they need to quickly expand in our regulated footprint as we continue to build infrastructure to deliver reliable energy for all our customers."

AEP has previous experience using Bloom Energy's fuel cell technology to power customers. Initially, the projects will rely on natural gas, however, the technology has the potential to use H₂ as an alternative fuel. These customer-sited resources will be required to meet the interconnection rules of the local operating company and will be designed to not send any energy back to the electric grid. AEP will work with regulators to secure the necessary approvals needed for these projects.