Bloom Energy’s AI Data Center Growth Story Is Starting to Crack

Artificial intelligence has turned power infrastructure into one of the market’s hottest investment themes in 2026. As hyperscale data centers multiply, companies that can supply electricity quickly have become Wall Street favorites. That enthusiasm has lifted everything from utilities to turbine manufacturers and fuel cell providers. 

Yet the same growth story that fueled many of those gains is beginning to run into a less predictable obstacle: local opposition. For investors, the next phase of the AI infrastructure buildout may depend as much on regulators and communities as it does on technology. That shift matters for Bloom Energy (NYSE:BE).

Momentum Is Moving the Wrong Direction

Bloom Energy has delivered an enviable return in 2026, with the stock climbing 149% year to date. Yet that headline figure hides a growing loss of momentum. Shares now sit roughly 39% below the June peak after investors began reassessing how quickly the company’s biggest opportunities can translate into revenue.

The first blow came earlier this month when a short seller questioned Bloom’s long-term growth assumptions and customer concentration. While the market didn’t fully embrace the bearish thesis, it added another layer of uncertainty just as expectations for AI infrastructure spending had become increasingly optimistic.

Now another development has put the spotlight back on execution risk.

Project Jupiter Faces Another Roadblock

Oracle‘s (NYSE:ORCL | ORCL Price Prediction) proposed Stargate campus in New Mexico, called Project Jupiter, represents a planned $165 billion investment, making it one of the largest AI infrastructure projects under development. The project originally planned to rely on a natural gas-fired power plant, but following concerns from local officials and residents over emissions and water consumption, that was abandoned in favor of deploying up to 2.45 gigawatts of Bloom Energy’s solid oxide fuel cell technology.

That made the project one of Bloom’s most visible growth opportunities. Unfortunately for shareholders, the project was rejected by New Mexico regulators for a second time. Although the fuel cell approach remains under consideration, the required air permit application is still pending. The New Mexico Environment Department has ordered a public hearing, but as of mid-July no hearing date has been scheduled.

That doesn’t necessarily kill the project. It does push revenue further into the future, which matters for a stock priced around aggressive growth expectations.

A Bigger Trend Could Matter Even More

Project Jupiter may be only one facility, but it highlights a broader challenge. Communities across the country are becoming more vocal about data center construction because of concerns over electricity demand, water consumption, land use, and environmental impacts. Until recently, most opposition remained local.

Now the issue has expanded. New York recently became the first state to approve a one-year statewide moratorium on new data center construction, raising the possibility that other states could adopt similar policies.

For Bloom Energy, that’s an important development because its growth narrative depends heavily on the rapid expansion of AI data centers. Delays don’t eliminate demand for electricity, but they can postpone orders for fuel cells, stretching out revenue recognition and making quarterly growth less predictable.

Key Takeaway

In short, Bloom Energy remains well positioned to benefit from AI-driven power demand, and its fuel cell technology still offers advantages over traditional natural gas generation in locations where emissions and water use are major concerns. That said, investors should recognize that regulatory approvals are becoming just as important as technological advantages.

A 149% gain this year shows investors continue to believe in Bloom’s long-term opportunity. A 39% decline from its June high shows the market is also beginning to price in execution risk. Ultimately, if more data center projects encounter permitting delays or community resistance, Bloom’s growth could arrive more slowly than many shareholders have been expecting. That’s a risk investors shouldn’t ignore, even if the long-term demand for AI power infrastructure remains intact.

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