NEW YORK, March 9, 2026, 12:29 EDT
Plug Power is looking to tap into surging AI data center demand, aiming to supply as much as 250 megawatts of hydrogen-fueled electricity in a possible PJM Interconnection auction—no small move on the country’s largest power grid. To pull it off, the company needs deals of at least seven years. Talks are already underway between Plug and hyperscalers, data center operators, and utilities, according to Bloomberg. Shares edged up roughly 0.2% around midday Monday. Bloomberg.com
Timing is critical here. Both PJM and the White House are chasing extra supply after soaring data-center demand put the Mid-Atlantic grid under strain, driving capacity prices much higher and elevating standby power from a niche product to a key market lever. Reuters
The capacity auction lets grid operators compensate generators for standing by in future years, rather than only for power supplied right now. Last month, Reuters said PJM is weighing a backstop auction and considering rules that would require major new loads like data centers to supply their own power or face curtailments during periods of grid strain. Reuters
Plug heads into the contest following an improved quarter. The fuel cell and electrolyzer maker posted 2025 revenue at roughly $710 million, with fourth-quarter sales coming in at $225.2 million. Gross profit landed in positive territory at $5.5 million for the quarter. Jose Luis Crespo stepped in as CEO on March 2, pledging Plug would “continue executing with discipline” in 2026. Plug Power
Plug is also looking to buy itself some breathing room. On Feb. 26, the company announced it had inked a definitive deal to sell its Project Gateway property in New York to Stream Data Centers, bringing in at least $132.5 million—the opening move in a bigger push aimed at freeing up more than $275 million. Crespo called it a “disciplined approach to capital management” as Plug works to overhaul its asset portfolio. Plug Power
The balance sheet remains a sore spot. Plug’s annual report showed a 2025 net loss of about $1.7 billion and flagged ongoing cash burn, while cautioning that short-term liquidity is riding on asset sales, freeing up restricted cash, and keeping financing lines open. According to the filing, Plug still has $944.1 million left under its at-the-market stock sale plan and can tap a separate $1 billion standby equity line—both of which could dilute existing shareholders. SEC
Plug isn’t the only player eyeing demand from data centers. Last year, Bloom Energy landed a Brookfield-supported deal that could reach $5 billion to roll out fuel cells at AI sites. FuelCell Energy followed in January, unveiling a data-center power tie-up with infrastructure investor SDCL. For fuel-cell and hydrogen equipment makers, this corner of the market is moving fast—one of the few with real momentum. Reuters
The divide on Wall Street hasn’t gone anywhere. Following last week’s earnings, BMO’s Ameet Thakkar noted Plug is doubling down on a more focused hydrogen strategy, though he questioned whether the company’s cash burn could really shrink enough. Jefferies, which lowered its price target Monday to $1.80 from $2.00, called the company’s 2026 EBITDA target a “show me story.” Barron’s
Plug is holding to its forecast for positive EBITDA by the fourth quarter of 2026—a benchmark for profit that strips out interest, taxes, and certain accounting charges. But in reality, hydrogen players broadly are wrestling with postponed projects, stubbornly high costs, and patchy demand, particularly across Europe. If the PJM plan stalls, there may not be much margin for error. fool.com
