FCEL vs. OKLO: Comparing Two Data Center-Linked Power Plays
FuelCell Energy FCEL and Oklo Inc. OKLO are both trying to solve a problem that has become critical for data centers: securing large amounts of dependable power without long waits for grid upgrades. Their technologies, however, are at very different stages of commercialization. FCEL already has operating fuel-cell systems, customer commitments and manufacturing expansion underway, while OKLO’s opportunity is tied more heavily to advanced nuclear projects that are still moving through development, regulatory and construction milestones.
The Case for FCEL Stock
FuelCell Energy is positioning its carbonate fuel-cell platform as a fast-to-deploy source of continuous, behind-the-meter power for AI and data center customers. Its systems are modular, can run on natural gas or biogas, and are designed to provide 24/7 baseload power without combustion. That matters in a market where grid interconnection delays can slow data center expansion. The company says its blocks can begin shipping within 90 days after an order, with full on-site commissioning possible in less than a year.
Commercial traction is also improving. Data centers represented roughly 97% of FCEL’s third-quarter proposal pipeline, with fiscal 2026 year-to-date proposals reaching about 10 GW. The Fit Energy agreement covers up to 380 MW, including a committed initial 30 MW phase, while a separate 75 MW capacity reservation was secured with a major data center operator in Texas. On July 31, FCEL reported $1.3 billion of committed backlog and $2.4 billion of awarded capacity backlog.
The company is expanding production to support that demand. It is targeting a 100 MW annualized production rate and plans to lift Torrington capacity to 500 MW by June 2028, with the expansion fully funded. FuelCell Energy also targets positive adjusted EBITDA in fiscal fourth-quarter 2027. Still, execution remains the key issue. Awarded capacity is not the same as firm contracted backlog, and profitability depends on backlog conversion, customer schedules and manufacturing cost reductions. FCEL has also yet to establish sustained positive operating cash flow, leaving financing and project execution as ongoing risks.
The Case for OKLO Stock
OKLO offers a different route to data center power. Its Aurora advanced fission plants are designed to provide long-duration, reliable electricity, giving the company exposure to rising demand from data centers and other large users. The opportunity is meaningful because advanced nuclear could supply steady power with a small physical footprint and limited dependence on weather conditions.
The challenge is timing. OKLO’s first planned commercial Aurora powerhouse at Idaho National Laboratory is targeting startup in 2028, so meaningful power revenues remain some distance away. Its Ohio project has additional grid, permitting, financing and construction hurdles. PJM removed the 750 MW project from its current grid-connection review, and OKLO estimates that losing its place in the process could delay the development by at least 14 months.
OKLO does have financial flexibility, with roughly $3 billion in cash and marketable securities at the end of the second quarter. Yet spending is rising. The company expects 2026 operating cash use of $120-$150 million and property-and-equipment spending of $400-$500 million. Fuel availability is another risk because its Centrus HALEU arrangement remains a letter of intent rather than a definitive agreement.
Price Performance
The gap is striking. FCEL has gained 124.2% year to date, while OKLO has fallen 46.7%. That suggests that investors have recently rewarded FuelCell Energy’s improving commercial conversion and nearer-term data center opportunity, while remaining cautious about OKLO’s longer development timeline.
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Valuation
FCEL also looks less demanding on a trailing price-to-book basis, trading at 1.33X versus more than 2X for OKLO. Given OKLO’s pre-revenue project profile, its higher multiple leaves less room for delays or cost overruns.
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Earnings Estimates
FuelCell Energy’s fiscal 2026 consensus loss estimate of $1.93 per share implies a 56.2% improvement from fiscal 2025.
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By contrast, OKLO’s projected 96-cent loss represents a 33.3% deterioration from 2025. The estimate trend therefore favors FCEL, even though both companies remain loss-making.
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Which Stock Has Better Growth Prospects?
FCEL and OKLO both offer exposure to the expanding power needs of data centers, but their risk profiles differ sharply. FuelCell Energy has existing technology deployments, growing data center commitments, funded manufacturing expansion and an improving earnings outlook, though profitability is not yet assured. OKLO offers significant long-term nuclear potential, but commercial revenues remain further away, and execution depends on regulatory, construction and fuel milestones. FCEL carries a Zacks Rank #3 (Hold) and is therefore better placed at the moment than Zacks Rank #4 (Sell) OKLO.
You can see the complete list of today’s Zacks #1 Rank stocks here.
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