Plug Power Jumps on New Data Center Collaboration

Plug Power ($PLUG) shares surged more than 10% in early trading after the hydrogen fuel-cell company announced a non-binding Letter of Intent to monetize its electricity rights in New York and another U.S. location and collaborate with a U.S. data center developer.

Management said the partnership underscores Plug’s “growing presence in the rapidly expanding data center sector,” where it plans to supply backup and clean-power solutions.

AI Energy Demand Driving New Opportunities

Energy access has become a key bottleneck in the U.S. AI boom, a challenge recently emphasized by Nvidia CEO Jensen Huang and Microsoft CEO Satya Nadella.

Plug’s move positions it to tap into the surging energy demand from hyperscale data centers, offering hydrogen-based alternatives to traditional power generation.

Analyst Spotlight and Market Context

In October, HC Wainwright’s Amit Dayal raised his price target on Plug Power to $7 from $3, citing its potential to power AI-related infrastructure — the highest target on Wall Street. The upgrade sparked record call-option activity in the stock.

Meanwhile, peer Bloom Energy ($BE) has also benefited from AI-driven power demand, recently striking a deal to supply Oracle data centers, boosting its shares earlier this year.

Liquidity Boost and DOE Program Update

Plug Power expects to generate over $275 million in liquidity improvement from:

Monetizing electricity rights
Releasing restricted cash
Lower maintenance expenses

The company also announced it is suspending participation in the Department of Energy loan program, saying its recent hydrogen supply agreements have reduced the need for additional production capacity.

Plug Power is set to report its Q3 2025 results later today.