On Wednesday, Bloom Energy shares rose 20% in premarket trading after the company reported record first-quarter results that beat expectations and raised its full-year outlook. This move highlights Bloom’s expanding role as demand for energy from AI data centers, which require significant, reliable power to process large-scale artificial intelligence workloads, increases.

Adjusted earnings per share came in at 44 cents, far above the analyst estimate of 12 cents and up from 3 cents a year ago. Revenue reached $751 million, a 130% increase from last year and $212 million higher than expected. This strong performance shows that more customers are adopting Bloom’s solid oxide fuel cell technology.

Bloom Energy now expects full-year revenue between $3.4 billion and $3.8 billion, up from its earlier forecast of $3.1 billion to $3.3 billion. The company also raised its full-year adjusted earnings guidance to $1.85 to $2.25 per share, compared to $1.33 to $1.48 per share projected in February.

Investors are showing strong interest in Bloom’s fuel cells, as AI data center operators seeking reliable, grid-independent power sources to support the high, unpredictable energy requirements of advanced AI workloads turn to alternatives to overburdened utilities. Bloom’s solid oxide technology generates efficient on-site power, producing only heat and water as byproducts. These features align with the continuous, intensive power requirements of large computing facilities running advanced AI.

Bloom Energy shares have surged 161% this year, underscoring strong investor confidence as demand for on-site AI power grows.