Empowering Data Centers with 24x7 Decarbonized Power: The Role of Solid Oxide Fuel Cells
The increasing adoption of artificial intelligence technologies has significantly boosted the demand for data centers and the electricity required to power them. A ChatGPT query requires 10 times as much electricity as a Google search query. As a result, estimated CO2 emissions associated with a ChatGPT query could be up to 20 times higher than a Google search. This surge in power demand, coupled with the retirement of old power generation and delays in new transmission infrastructure, poses a critical challenge for the US national grid network.
The power demand shortage becomes more critical when factoring in the global CO2 budget, as we must account for the need for clean energy sources. Despite the widespread deployment of renewable energy, delays in transmission infrastructure hinder its quick and cost-effective delivery, preventing data centers’ ability to reduce their carbon footprint. Data centers are now turning to on-site power generation paired with carbon capture to meet their urgent power needs while achieving decarbonization goals.
Challenges for Renewable Energy
Intermittent renewables struggle to reliably meet 24x7 power demand due to their unpredictable nature. Leading institutes and agencies agree that the total cost of intermittent renewables paired with batteries for continuous power is still impractically higher than efficient natural gas power generation. However, the biggest bottleneck for renewable energy is in the transmission and distribution, preventing the power from reaching end-users.
On-Site Power Generation with Carbon Capture
On-site, efficient natural gas-based power generation paired with carbon (CO2) capture is gaining popularity as a crucial solution to mitigate climate change. However, traditional combustion-based power generation faces high costs and energy consumption hurdles for carbon capture due to diluted CO2 concentrations in the flue gas. Fuel cells, however, offer a promising alternative.
Fuel Cell Technology
Leading CCUS research organizations worldwide, including the US Department of Energy and the IEA GHG programs, have recognized fuel cells among the most suitable power generation systems for CO2 capture. Fuel cells convert natural gas into electrical energy through an electrochemical process, producing a CO₂-rich exhaust with significantly higher CO2 concentration and lower mass flow compared to combustion exhausts.
The fuel cell technology utilizes an electrochemical process to convert fuel, such as natural gas, directly into electrical energy without combustion. This results in a CO₂-rich exhaust with approximately 16 times lower mass flow after water removal and over 12 times higher CO₂ concentration compared to combustion exhausts. The small exhaust gas mass flow allows for smaller equipment sizes, addressing cost and energy consumption challenges and significantly reducing the cost of carbon capture. Additionally, traditional combustion power generation emits pollutants and particulates, including NOx and SOx, which require scrubbing before the CO₂ product from the carbon capture plant can be safely transported or stored. Since fuel cells do not produce these pollutants and particulates, the scrubbing and polishing steps are eliminated.
Carbon Capture Infrastructure in the US
Carbon capture storage infrastructure is expanding across the US. Currently, several Class VI wells with final or near-final applications are located in California, Texas, North Dakota, and Wyoming. The EPA is overseeing 56 active Class VI projects and reviewing 161 well applications, indicating ongoing growth in carbon capture infrastructure. Once operational, these wells are expected to provide approximately 220 million metric tons of storage capacity annually by 2030, enabling around 75 GW of 24/7 decarbonized power each year.
Strategic Location of Data Centers
Data centers can strategically locate their facilities in areas with natural gas availability, fiber optics, and Class VI wells. With ample natural gas, growing Class VI well infrastructure, and the availability of the 45Q federal tax credit, data centers have several options for cost-effective, round-the-clock decarbonized power from fuel cells with carbon capture. Power from fuel cell power plants can also be exported via the utility grid to data center locations elsewhere within the same Independent System Operator (ISO).
Finally, fuel cells paired with a carbon capture solution will be available much sooner and at a lower cost than other 24x7 decarbonized power options being considered, such as Advanced Geothermal and Small Modular Nuclear.
Possible Parallel Pathways: AI Growth and Decarbonization
In the race for AI growth, on-site, reliable base-load power with carbon capture is crucial for data centers to achieve their decarbonization objectives. Fuel cell technology with integrated carbon capture offers a practical and cost-effective decarbonized power. As the net-zero clock ticks away, industry leaders must prioritize these technologies to build a resilient, decarbonized infrastructure that supports the growing demands of AI and data centers while ensuring a sustainable future.
In conclusion, as data centers increasingly adopt on-site power generation, fuel cells emerge as the most promising path to a zero-carbon future—offering a cost-effective and technologically viable solution for carbon capture. Learn more in the Bloom Energy 2025 Data Center Power Report: Mid-Year Pulse here.
About the Author
Ivor Castelino
Ivor Castelino is currently a Senior Director of Energy Transition Solutions at Bloom Energy with a focus on Carbon Capture and Biogas. He leads the effort to develop innovative solutions and partnerships for capturing the CO2 emissions from natural gas fueled Bloom Energy fuel cells and converting organic waste into electricity using the same high efficiency fuel cell platform. His efforts have led to impactful projects such as utilizing fuel cells at dairy farms, turning organic waste into clean electricity. One of these projects, in Kerman, California, received recognition from numerous publications including a notable feature in the BBC’s Humanizing Energy series. Ivor also sits on the Board of the American Biogas Council, the largest industry association for biogas.
Prior to his current role, Ivor was a Managing Director of Structured Finance at Bloom. In this role, he developed a leasing program that allowed customers to make monthly payments for fuel cells rather than requiring an upfront purchase. This innovative approach enabled the company to sell over $1 billion in fuel cells and expanded the number of customers who could access this innovative technology.
Ivor graduated with a Bachelor’s in Engineering from the National Institute of Technology Karnataka (India) and a Master’s in Business Administration from the University of California - Berkeley. He resides in the Bay Area with his wife, two kids and his farm animals.
Jittisa Ketkaew
Jittisa Ketkaew is an innovation leader currently serving as Principal Technologist in the Office of the CTO at Bloom Energy. At Bloom Energy, Jittisa leads technology strategy for Bloom’s solid oxide fuel cell technology’s decarbonization solutions, including carbon capture-compatible fuel cell, spearheading collaboration with carbon capture technology industry leaders. Prior to Bloom Energy, Jittisa pioneered a startup company, Supercool Metals, where she led work in advanced materials processing and product innovation high-performance alloys for aerospace applications.
Jittisa obtained a PhD in Mechanical Engineering and Materials Science from Yale University and a B.Sc. from Chulalongkorn University, and she has further honed her strategic expertise through executive education in Product Strategy at Northwestern University's Kellogg School of Management. A dedicated advocate for the materials science community, she has served on ASM International’s Emerging Professional Committee since 2020. Jittisa’s work is widely cited in scientific literature and multiple patents to her name, reflecting her impact across academic and industrial domains.
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