Why data centers aren’t a good use of green hydrogen

Maeve Allsup | Source: Latitude Media | Posted 09/02/2024

When Bloom Energy came out of stealth mode in 2010, it promised a revolutionary new fuel cell to bring “clean, reliable energy” to data centers and other commercial customers. Its solid oxide fuel cells were supposed to be a critical enabler of the hydrogen economy.

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Since its debut in 2010, Bloom Energy pledged to deliver clean, reliable energy to data centers with its solid oxide fuel cells powered by hydrogen. However, after almost 15 years, natural gas still fuels most of Bloom's cells. Yet, amid a surge in electricity demand from data centers, there is a new push towards utilizing hydrogen, with companies like Vertiv and Equinix testing hydrogen fuel cells for backup power.

Although hydrogen's potential for powering data centers has garnered interest from major players like Microsoft, challenges remain. Hydrogen conversion incurs energy losses, and issues persist with transportation and existing hydrogen industry prioritization. While some data centers, like ECL's in California, have successfully implemented hydrogen-powered solutions, the viability of hydrogen for continuous power remains uncertain, with backup power seen as a more practical application for the foreseeable future.

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Why data centers aren’t a good use of green hydrogen

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