Plug Power will unlock $275 Million in data center power market

Plug Power said it expects to generate over $275 million through monetizing assets and releasing restricted funds, while reducing maintenance costs. The hydrogen fuel cell manufacturer is shifting its focus to high-return opportunities, and the rapidly growing data center market.

The shares of the company rose over 10% during premarket trading.

The company signed an non-binding letter to intent to monetize their electricity rights in New York, as well as another U.S. city. They also agreed to work with a data center developer who is expanding across the nation.

Plug said that the collaboration would explore using its fuel cells powered by hydrogen to provide backup and auxiliary energy for data centers. This sector is facing a growing demand for reliable low-carbon power.

This move highlights Plug's focus on higher-returning projects and its drive to commercialize the hydrogen technology in energy intensive industries.

The company announced that it would stop participating in the U.S. Department of Energy loan program, and instead redirect funds to opportunities with faster paybacks across its hydrogen network.

Andy Marsh, CEO of Plug, said: "The actions that we are taking today demonstrate Plug's financial discipline and agility."

"Monetizing assets strengthens the balance sheet of our company, and partnering with a large-scale development on data centers expands our reach in a high-growth, dynamic market that values reliability. resiliency, and sustainability."

The company announced last month that Jose Luis Crespo, an insider, would be its next CEO. He will assume the role in March 2026, after Plug's annual report for 2025 is filed.

As of June 30, Plug had more than $140 million unrestricted in cash and cash equivalents.

Plug Power announced on Monday that it will continue to assess hydrogen production and infrastructure aligned with long-term costs and growth goals.

(Reporting by Pranav Mathur in Bengaluru; Editing by Shashesh Kuber) The company has plants in Georgia Tennessee and Louisiana that have a total production capacity for 40 tons of hydrogen per day. They serve major customers such as Walmart, Amazon, and BP. (Reporting from Pranav Mathur, Bengaluru. Editing by Shakesh Kuber.)

(source: Reuters)