Deployment would commence in 2027
US cleantech firm FuelCell Energy has partnered with AI data center developer Inuverse to explore the deployment of up to 100MW of fuel cell power at a data center in Daegu, South Korea.
The companies signed a non-binding Memorandum of Understanding (MoU) that sets the parameters for the potential deployment. The deployment would occur over phased increments, commencing in 2027 at Inuverse’s AI Daegu Data Center (AI DDC), which is currently under development.
According to Inuverse, once built, the data center will feature advanced rack cooling, hot zone optimization, absorption chilling enabled by the thermal energy from FuelCell Energy’s platform, and a clean waste model that reduces operational costs and improves performance.
The data center is being built through a phased approach. Phase one will see the development of a 150MW facility, with phase two expanding the data center to 300MW+.
Reacting to the announcement, David Kim, EVP and chief business development officer of Inuverse, said: “This collaboration is pivotal for Inuverse to address the surging data processing demands of the AI era while proactively achieving our renewable energy and ESG objectives. We believe this project will set global ESG standards for data centers.”
FuelCell Energy has actively targeted the data center market as a crucial offtaker for its technology.
“Our clean, reliable, and scalable platform is purpose-built for the data center market,” said Mike Hill, executive vice president and chief commercial officer of FuelCell Energy. “With proven scaled energy platforms already operating in Korea, and integrated thermal capabilities that align seamlessly with Inuverse’s cooling needs, we’re proud that our technology could be used to support this transformative infrastructure project. Together, we’re enabling a digital ecosystem that is expected to drive innovation and regional growth in Korea.”
The deployment with Inuverse would be its first with a data center customer. However, it currently operates a number of deployments across the world. According to its website, the company has 188 fuel cell modules currently deployed across four projects. The deployments include a 58.8MW fuel cell park in Hwaseong, Gyeonggi, South Korea.
Fuel cells are gaining popularity within the data center market, offering a lower-carbon solution for developers seeking dispatchable power.
The biggest player in the sector is Bloom Energy, which has signed a number of deals to power data centers within the US market. Last November, the company signed a 1GW supply deal with American Electric Power to power AI data center sites.
Also in February, the firm expanded a supply deal with Equinix, which will see the deployment of fuel cells across 19 data center sites, with a combined capacity of more than 100MW.
While fuel cells promise a much lower emission profile than fossil fuel alternatives due to the lack of combustion in their generation process and ability to be run on hydrogen, concerns remain over how low-carbon they really are.
At present, fuel cells rely mainly on natural gas to power them due to the high cost of green hydrogen, which has led to some trepidation amongst data center developers seeking a clean power solution. This was most evidently seen last year, when Amazon canceled a contract with Bloom Energy in Oregon due to emission concerns.
