Say you’re building a $20 billion data center…

You bought the land.

You ordered billions of dollars worth of Nvidia GPUs.

Construction crews are racing to build a facility spanning multiple football fields.

Everything is on schedule.

There's just one problem.

You don't have any electricity.

You call the local utility company.

They tell you they'll have enough power available… in five years.

Welcome to one of the biggest bottlenecks in the entire AI buildout.

Introducing: Bloom Energy (BE)

Everyone thinks artificial intelligence needs more electricity.

That's only half true.

America isn't running out of power.

It's running out of ways to deliver that power fast enough.

A single AI data center consumes as much electricity as a small city.

When Microsoft, Oracle, Google, or Meta decides to build another campus, they can't simply plug into the wall.

They enter what's known as the interconnection queue – the waiting list to connect to the electric grid.

Today, that wait averages around five years.

In Northern Virginia – the world's largest data center market – it can stretch to seven years.

Imagine spending billions building a data center, only to hear:

"We'll have your electricity ready sometime around 2033."

There’s got to be a better way.

So... How Do You Get Power?

You have three choices.

Option #1: Wait for the grid.

This is the cheapest source of electricity. But it's also the slowest.

Option #2: Build a gas turbine.

A good alternative. Except companies like GE Vernova have essentially sold out through 2028.

So now you're waiting again.

Option #3: Call Bloom Energy.

Bloom takes a completely different approach.

Instead of waiting years for the electric grid, Bloom brings the power plant to you.

The company builds modular "Energy Servers" – large boxes that sit next to your data center and generate electricity on-site.

Feed them natural gas and they produce continuous electricity 24 hours a day, seven days a week.

No waiting for new transmission lines, transformers, or utility companies.

Bloom's systems can be installed and produce power in just 90 days.

This is why customers are buying Bloom. 

Not because it's the cheapest source of electricity. But because it's the fastest.

Bloom's Business Is Booming

For years, Bloom Energy was an afterthought.

The company spent decades trying to convince customers they needed on-site power.

Then AI arrived.

Almost overnight, the market realized that fast electricity had become just as valuable as cheap electricity.

The stock has surged 800% over the past year, despite falling from $350 → $210 in the last few weeks.

And the customer list keeps getting longer.

Oracle – Agreed to buy enough Bloom systems to generate up to 2.8 gigawatts of electricity – roughly the output of three nuclear reactors. Even more impressive, Oracle selected Bloom as the primary power source for its flagship AI data center in New Mexico.

Brookfield – One of the world's largest infrastructure investors increased its financing commitment from $5 billion to $25 billion. Instead of paying millions upfront for Bloom's equipment, customers can simply buy the electricity it produces – making Bloom's systems easier to adopt.

Nebius – The AI cloud provider ordered 328 megawatts of Bloom's systems and signed up for as much as $2.6 billion in long-term service agreements.

American Electric Power – Signed a deal for up to 1 gigawatt of Bloom's technology. Think about that for a second: the electric grid is buying Bloom's power systems because even the grid can't expand fast enough.

Different customers.

Same conclusion.

Nobody is buying Bloom because it's the cheapest way to generate electricity.

They're buying Bloom because they need electricity now.

So... Should You Buy Bloom?

There's no question Bloom Energy is solving a real problem.

The challenge is the valuation.

Even after pulling back from $350 to $210, Bloom is still a $60 billion company trading at an eye-popping 47x next year's expected earnings.

To be fair, those earnings estimates continue to move higher as the company lands new customers and expands existing relationships.

But 47x earnings still leaves very little room for error.

Personally, I'm not chasing this 800% winner.

That said, I'm also not letting the recent selloff in AI stocks shake my conviction in the broader AI buildout.

Look across the sector: Nvidia, Micron, AMD, GE Vernova…

Many of the biggest AI winners are well off their highs.

Does that mean the AI buildout is over?

Absolutely not.

• Companies are still building data centers.

• They're still buying GPUs and CPUs.

• And they're certainly still searching for ways to power them.

So if you want to buy Bloom as a speculative position after the recent pullback, I won’t steer you away.

I certainly understand the thesis.

And while today's headlines are all about the selloff… next week will be a different story entirely.

Just know that the long-term trend hasn't changed.

The AI buildout isn't stopping.

Neither should our focus on the companies making it possible.