Electrical power is becoming a significant constraint on data center growth. In markets where the grid can’t keep pace with demand, on-site power is quickly emerging as a critical part of the solution. Fuel cells aren’t always part of this conversation, which is surprising since they offer power solutions that are reliable, scalable, cost-effective, and quick to deploy.
Fuel cells have been delivering on-site power for years, but in the data center world, many people overlook them as a viable option to replace the grid or gas turbines. That’s starting to change.
As operators look for alternatives they can deploy quickly and use to deliver consistent, high-quality power, fuel cells are an increasingly attractive choice. But outdated perceptions still linger – and they can lead to missed opportunities. Here are five common myths about fuel cells, and why they no longer hold up:
Myth 1: Fuel cells are only suitable for small-scale power generation
That may have been true once, but no longer. Fuel cells are already providing large-scale primary power for data centers, hospitals, manufacturing plants, and government facilities and are an ideal solution for 200-300 MW data centers.
These are large-scale, high-stakes environments where uptime is non-negotiable. With modular designs, fuel cells offer a scalable path to reliable power – especially in locations where the grid can’t move fast enough.
Myth 2: Fuel cells are not reliable enough to serve as primary power
In practice, fuel cells have proven to be among the most robust and reliable power solutions available. Solid oxide fuel cells use a modular system designed to deliver up to five nines of uptime, enabling them to serve as the primary power source for mission-critical applications.
They can be hot-swapped, they don’t need to shut down for planned maintenance, and, during extreme weather events or natural disasters, fuel cells have stayed online while other systems faltered.
Myth 3: Fuel cells rely on hydrogen, which isn’t commercially practical
Hydrogen based proton-exchange membrane (PEM) fuel cells often get the headlines, but large commercial deployments today mostly use solid-oxide fuel cells (SOFC) that run on natural gas.
They are a different type of technology that generates constant power, with far fewer emissions than combustion-based systems. Unlike engines or turbines, fuel cells don’t burn the fuel; they use an electrochemical reaction that generates near-zero criteria pollutants.
In fact, there is no better way to convert a molecule into electricity than with a fuel cell. It’s one of the cleanest, most efficient ways to convert energy from a fuel source to electricity.
Myth 4: They’re too expensive to be economically viable
Fuel cells are cost competitive with gas turbines and reciprocating engines. Upfront costs can look higher than conventional combustion alternatives – until you factor in the total cost of power, which for fuel cells, includes a higher operational efficiency of approximately 30 percent.
Fuel cells are modular, so operators can start small and ramp as needed, paying as they grow. In locations where grid upgrades take years and backup diesel is no longer viable, fuel cells are proving to be a competitive solution and that advantage is only increasing.
Myth 5: They can’t support AI-scale power needs
This may be the biggest misconception of all. Fuel cells are well-suited for today’s high-density, rapidly growing compute environments. Fuel cells are digital, solid-state power generators, creating electricity in one step (an electrochemical reaction) that can be switched off instantly.
Compare that to their analogue counterparts, the rotating generators that create power in three or four steps and have large inertias that must be overcome to follow the load up or down. Fuel cells offer consistent, high-quality power – even under variable or spikey AI loads.
The takeaway
Fuel cells are not a science project or a backup option. They’re being used today, and will be used tomorrow, as primary power for data centers that can’t wait for the grid. In a market where time, reliability, and emissions all matter, separating myth from reality is more than just helpful – it’s essential.
Want to see how top operators are staying ahead? Download the Bloom Energy 2025 Data Center Power report here.
This article was originally published in Data Center Dynamics – view here.
