Bloom Energy stock has surged 1,430% over the past year as data centers drive demand for on-site power generation.

Bloom Energy shares traded at about $20 per share one year ago and reached $302 before market open on May 27, representing a 1,430% gain. The company makes solid oxide fuel cells that convert fuel into electricity for on-site power generation at data centers.

Data centers with 10,000 square feet of space use around 100 megawatts (MWs) of power — enough to power about 80,000 U.S. homes. Bloom can deploy fuel cells in about three months, offering an alternative to data centers waiting years for conventional grid connections, particularly in rural areas.

Bloom has signed major agreements including a $5 billion deal with Brookfield Asset Management, a $2.6 billion 10-year agreement with Nebius Group, and an expanded deal with Oracle to provide up to 2.8 gigawatts (GW) of capacity. However, the stock trades at over 32 times sales and has a forward price-to-earnings ratio of more than 147, suggesting the market is pricing in substantial future growth.