"Clean energy's investment case traditionally hinged on policy support and cost competitiveness with fossil fuels. That changed in 2025 when artificial intelligence infrastructure created urgent new demand for reliable, on-site power generation. The shift became visible when companies like Bloom Energy ( NYSE:BE) secured data center contracts that validated fuel cells as immediate power solutions, driving investor enthusiasm for on-site generation technologies. This wasn't about tax credits or renewable mandates."
"Data center energy consumption is projected to double by 2028, and renewable providers are positioned as the fastest path to new capacity. But if AI investment slows or if utilities accelerate natural gas plant construction, the urgency fades. Track announcements from hyperscalers like Microsoft ( NASDAQ:MSFT), Alphabet ( NASDAQ:GOOGL), and Amazon ( NASDAQ:AMZN) about their energy procurement plans. These appear in quarterly earnings calls and sustainability reports."
Invesco WilderHill Clean Energy ETF (PBW) recovered about 74% over the past year, rising from roughly $20 to $35, yet it still trades well below its 2021 peak after a roughly 70% drawdown driven by rising rates and profitability concerns. Artificial intelligence data-center buildout in 2025 created urgent demand for reliable on-site power, validating fuel cells through contracts such as Bloom Energy's and shifting investment emphasis from policy-driven incentives to immediate capacity needs. Data center energy demand could double by 2028, favoring renewable providers as the fastest path to capacity. PBW also carries commodity concentration risk via lithium exposure after lithium prices collapsed below $12,000 per ton.
Read at 24/7 Wall St.
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