Enabling Net Zero Data Centers: A Techno-economic Analysis of Bloom Energy’s SOFC Systems

The rising energy demands of data centers—driven by accelerating digitization and AI adoption—combined with increasing grid constraints and growing concerns around power availability, time-to-power, security, and cost, are pushing the sector toward on-site generation solutions. This study examines the European data center landscape, develops a techno-economic analysis of Bloom Energy’s Solid Oxide Fuel Cell (SOFC) system for a 100 MW data center application under various configurations, and benchmarks its performance against alternative power solutions across technical, economic, and environmental dimensions. The findings indicate that Bloom's SOFC system offers strong technical performance, lower environmental impact, and—in many scenarios—competitive or superior economics. Its modular design and short deployment timeline—typically under one year—contrast with the 3 to 10 years often required for conventional grid or on-site solutions. Without accounting for time-to-power effects, Bloom’s systems result in higher LCOEs than gas turbines and CCGTs, with only natural gas CHP-integrated systems reaching cost parity with gas reciprocating engines. However, when opportunity costs from deployment delays are considered, all Bloom natural gas configurations become more cost-competitive than gas turbines, CCGTs, and even certain grids, such as those in Germany, the UK, and Ireland. Sensitivity and scenario analyses show that while Bloom’s systems are more capital-intensive and therefore more sensitive to interest rates, they are less exposed to fuel price volatility and carbon pricing. Furthermore, although hydrogen-fueled SOFCs are not economically viable under current green hydrogen costs, the analysis indicates that they could become competitive under future scenarios involving lower hydrogen prices and higher carbon costs.