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Hydrogen Energy Stocks in the AI Data Center Boom
Estimated reading time: 5 minutes · Last updated:
Bloom Energy, Brookfield Renewable and NextEra Energy are three public companies investors are watching as electricity demand from AI data centres rises. Bloom Energy makes hydrogen‑capable stationary fuel cells and entered 2026 with a product backlog of $6 billion, up 140% year‑over‑year; Brookfield Renewable is a diversified clean‑energy owner yielding 5.6%; NextEra pairs a large regulated utility with an expanding clean‑energy business and a 3.2% yield. Electricity demand rose 10% between 2005 and 2025 and is projected to grow 60% between 2025 and 2045, underpinning the market case for these companies. As first reported by Motley Fool, each company carries a different risk profile for investors.
Key takeaways
- Brookfield Renewable profile: Brookfield Renewable operates hydro, solar, wind and storage assets, holds a stake in Westinghouse, and offers a 5.6% dividend yield.
- NextEra Energy structure: NextEra Energy combines regulated utility operations with large contract renewables, offers a 3.2% yield and has proposed acquiring Dominion Energy to deepen its data‑centre market exposure.
- Electricity demand projection: Electricity demand increased 10% between 2005 and 2025 and is projected to grow 60% between 2025 and 2045, with AI cited as a major driver.
Table of contents
- Key takeaways
- Why AI changes electricity demand now
- Bloom Energy: hydrogen fuel cells and high growth risk
- Brookfield Renewable: yield and diversified clean‑power exposure
- NextEra Energy: regulated base plus strategic growth
- How the case for and against these stocks stacks up
- What to be careful about
- Frequently asked questions
Why AI changes electricity demand now
Large generative AI models and the server farms that run them create sustained, large‑scale electricity requirements compared with past computing loads. Energy‑demand data show electricity consumption rose about 10% from 2005 to 2025 and is projected to increase roughly 60% between 2025 and 2045, which helps explain why utilities and clean‑energy providers are central to the AI rollout.
That projected step change matters because different energy businesses capture that demand in different ways: direct onsite generation or resiliency products, contracted clean power for hyperscalers, and regulated distribution networks that deliver grid power. For investors focused on hydrogen energy, Bloom Energy’s fuel cells are positioned as a bridge for load that strains local grids, while large operators such as NextEra may win sustained growth through rate‑regulated returns plus merchant renewables contracts.
Bloom Energy: hydrogen fuel cells and high growth risk
Bloom Energy manufactures stationary fuel cells that can run on hydrogen and other fuels; the company’s backlog and growth expectations are closely tied to AI‑driven data‑centre demand for reliable power. Bloom Energy entered 2026 with a $6 billion backlog, up 140% versus a year earlier, and that momentum is central to the bullish case that revenue and margins could inflect.
Valuation is the other side of the story. Stock market data show the share price has risen by more than 200% over the prior 12 months and the price‑to‑earnings ratio is reported at very high levels — noted as 360x in the main text and 300x in a summary block — which places Bloom in a high‑risk, high‑return category. That combination of rapid backlog growth and a stretched valuation makes Bloom most suitable for aggressive growth investors who accept the risk of significant valuation swings.
Brookfield Renewable: yield and diversified clean‑power exposure
Brookfield Renewable owns a geographically diversified portfolio of hydroelectric, solar, wind and storage assets and also holds a stake in Westinghouse, giving it exposure across several clean‑power technologies. The source lists Brookfield Renewable as a one‑stop option for clean energy exposure and highlights its 5.6% dividend yield as a distinguishing feature for income‑oriented investors.
Brookfield already contracts power to AI customers, including major cloud providers, but because it lacks the monopoly protections of a regulated utility it faces market‑rate exposure. For investors prioritizing stable cash returns from the energy transition, Brookfield’s yield and asset mix are the centrepiece of the investment case, though that positioning brings contract‑price and merchant‑market risk.
NextEra Energy: regulated base plus strategic growth
NextEra Energy pairs a major regulated utility operation in the United States with an extensive contracted renewables business, giving it both predictable regulated cash flows and growth upside. Market data show a 3.2% dividend yield for NextEra, and the company has proposed acquiring Dominion Energy, a deal that would expand its footprint in a key data‑centre market.
Because regulated returns underpin a substantial share of NextEra’s cash flow, NextEra carries a lower risk profile relative to Bloom and Brookfield. The proposed acquisition of Dominion Energy remains pending, and that deal is the primary conditional item investors should monitor for its impact on NextEra’s growth profile and capital allocation.
| Company | Exposure to AI/data centres | Key figure cited | Risk category |
|---|---|---|---|
| Bloom Energy | Fuel cells for on‑site/resiliency power | $6 billion backlog (entering 2026); stock up >200% in 12 months; P/E listed as 360x (summary also shows 300x) | High |
| Brookfield Renewable | Contracted clean power and storage to cloud providers | 5.6% dividend yield; diversified hydro, solar, wind, storage; stake in Westinghouse | Medium |
| NextEra Energy | Regulated utility distribution plus contract renewables; proposed Dominion deal | 3.2% dividend yield; acquisition of Dominion Energy proposed | Low |
How the case for and against these stocks stacks up
The case for
- Rising electricity needs from AI data centres are a structural demand source; projected demand growth of 60% between 2025 and 2045 supports long‑term incremental sales for generators and contracted clean power providers.
- Bloom’s large backlog entering 2026 suggests near‑term revenue visibility if orders convert and execution stays on plan.
- Brookfield’s diversified asset base and 5.6% yield give investors cash returns while participating in multiple clean‑energy markets.
The case against
- High or stretched valuations, especially for Bloom where a very large P/E is reported, raise the risk of sharp price corrections if revenue or margins disappoint.
- Brookfield’s earnings depend on contract pricing and merchant markets rather than guaranteed regulated returns, exposing it to market cycles.
- NextEra’s growth via the Dominion acquisition is conditional on deal completion and regulatory approvals, introducing execution and timing risk.
What to be careful about
- Bloom Energy’s valuation metrics are described as extremely high in the source, increasing downside if growth slows.
- Brookfield Renewable faces merchant and contract‑price exposure because it lacks a regulated monopoly business for all of its assets.
- NextEra’s proposed acquisition of Dominion Energy is not completed and could be delayed or altered by regulators, affecting the company’s stated data‑centre strategy.
The bottom line
Investors looking at hydrogen energy and related clean‑power plays should separate execution from valuation. The market case for all three companies rests on rising electricity demand driven in part by AI data centres, but the profiles differ: Bloom is growth‑heavy with a large $6 billion backlog and an outsized valuation; Brookfield offers diversified asset exposure and a 5.6% yield with merchant risk; NextEra pairs regulated earnings with renewables growth and a pending Dominion deal. Which path suits an investor depends on tolerance for stretched multiples, reliance on contract markets versus regulated returns, and comfort with conditional deals.
What to watch
- Watch for progress and any regulatory milestones on NextEra’s proposed acquisition of Dominion Energy; no date has been set.
- Watch for Bloom Energy’s next disclosed backlog or quarterly results to see whether the $6 billion entering 2026 converts to revenue; no date has been set.
- Watch for Brookfield Renewable’s upcoming dividend or contract announcements for signs of new large data‑centre agreements; no date has been set.
Frequently asked questions
How is Bloom Energy connected to hydrogen energy and AI data centres?
Bloom Energy makes stationary fuel cells that can use hydrogen for on‑site and resilient power; the company entered 2026 with a $6 billion product backlog, and market data show the stock has gained more than 200% in the prior 12 months.
Why does Brookfield Renewable count as a medium‑risk option?
Brookfield Renewable owns hydro, solar, wind and storage and pays a 5.6% dividend; it is medium risk in the source material because its returns depend on contracted and merchant market prices rather than monopoly regulated rates.
What makes NextEra Energy lower risk than the others here?
NextEra combines a large regulated utility — which provides stable, rate‑regulated cash flows — with an extensive renewables business; the source lists a 3.2% dividend yield and notes a proposed Dominion Energy acquisition that would increase data‑centre market exposure.
Related reading
This article is information, not financial advice. Anyone acting on it should do their own checks.