Many big tech stocks have been soaring as spending for artificial intelligence (AI) infrastructure continues to grow. Major announcements this week during President Donald Trump's Middle East trip gave tech investors even more to cheer about.
The massive planned data center buildouts in Saudi Arabia and the United Arab Emirates (UAE) that were announced will need power. One energy company helping to supply onsite power to data centers is Bloom Energy (BE 3.37%). Based mostly on that growing business segment, Bloom shares jumped 12.6% this week as of 11 a.m. ET Friday, according to data provided by S&P Global Market Intelligence.
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Data centers will utilize onsite power sources
After President Trump's state visit to Saudi Arabia, the White House announced a $600 billion commitment to invest in the U.S. That included a $20 billion pledge for investments in AI data centers and energy infrastructure.
The UAE committed to participate in the construction of data centers in the U.S. that could be as large as a new 5 gigawatt data center campus planned for Abu Dhabi that was also announced this week.
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Key Data Points
The global expansion of data centers will also need an unprecedented amount of power. Bloom Energy notes that data center leaders believe that about 30% of all data center sites will utilize some onsite power as an energy source to supplement the electrical grid by 2030.
Bloom CEO KR Sridhar referenced that in the company's recent first-quarter earnings report. "We expect demand to grow, driven by AI, data center needs, and ... Bloom is well-positioned to serve these markets," he said.
This week investors are jumping on board as the future market for Bloom's onsite fuel cells continues to expand.
