(Reuters) -Brookfield Asset Management said on Monday it would invest up to $5 billion in Bloom Energy's fuel cell technology to power data centers, as companies seek cleaner energy to meet the needs of the artificial intelligence boom.
Shares of Bloom Energy surged 24.5% to hit a record high of $108.17 in morning trading.
Brookfield's first investment in its dedicated AI Infrastructure strategy taps into a shift to cleaner power sources such as nuclear, renewables and fuel cells as firms invest billions into building and expanding data centers amid the surge in demand for AI and cloud computing services.
Evercore ISI analysts in a note said Bloom's solid oxide fuel cells offer "reliable, scalable and clean on-site power".
"Hybrid power solutions" could become more important, addressing long lead times and regulatory hurdles for new generation capacity of the legacy grid, they said.
Bloom Energy has already deployed its fuel-cell technology to data centers, through partnerships with American Electric Power, Equinix and Oracle.
The companies are working on the design and delivery of AI factories globally, including a site in Europe that will be announced before the end of the year, according to a statement.
Brookfield is pushing to expand Europe's largest AI infrastructure cluster. In June, it announced plans to invest up to 95 billion Swedish crowns ($9.98 billion) to build an AI data center in Sweden and a 20 billion euro commitment for AI projects in France.
Fuel cells offer a cleaner alternative to traditional power by generating electricity through chemical reactions rather than combustion. Depending on the fuel, byproducts can include water and heat, making them more environmentally friendly.
($1 = 0.8639 euros)
($1 = 9.5158 Swedish crowns)
(Reporting by Dharna Bafna and Tanay Dhumal in Bengaluru; Editing by Sonia Cheema, Leroy Leo and Sriraj Kalluvila)