The fuel cell industry is drawing attention as a key power infrastructure for the era of AI transformation (AX) and green transformation (GX).
Fuel cells require less installation space than solar or wind power, making them suitable as power infrastructure for urban AI data centers. They can generate electricity continuously regardless of weather conditions, and their waste heat can be used for district heating in nearby areas, enabling highly efficient energy management.
According to the Korea Hydrogen and Fuel Cell Industry Association on Tuesday, power demand for AI data centers is projected to rise from 1,050 TWh in 2026 to 1,800 TWh in 2030.
Fuel cells are being elevated to a primary power source for solving grid shortages in the AI data center era.
Commercialization gained momentum when American Electric Power (AEP), the largest U.S. electric utility, signed a supply contract for up to 1 GW with fuel cell company Bloom Energy in November 2024 to power AI data centers. The scale matches Korea's entire cumulative installed capacity.
"Bloom Energy's move toward profitability last year signals that the industry has moved beyond the research phase into an explosive commercialization phase," said Lee Chang-hyun, a professor of energy engineering at Dankook University.
Multiple market research firms project the overall fuel cell market (including transportation) will grow at a compound annual rate of 10 to 26 percent through the 2030s, from 8 to 17 trillion won in 2025. As data center demand expands, the share of power generation applications is estimated to reach about 55 to 70 percent.
Facing the AI era, advanced nations are nurturing fuel cell businesses as power infrastructure.
The United States has fueled explosive demand for fuel cells as on-site power sources installed near data centers, under the "Build, Bring, or Buy" principle, which holds data center operators directly responsible for securing power and bearing the costs. China is also pursuing a large-scale deployment policy for power-generation fuel cells centered on polymer electrolyte membrane fuel cells (PEMFC) through government subsidies and other measures.
Korea boasts world-class fuel cell installed capacity and technological capabilities, but policy uncertainty is holding back the industry. According to the Advanced Fuel Cells Technology Collaboration Programme (AFC TCP), affiliated with the International Energy Agency (IEA), global new installations reached 418 MW in 2024, meaning Korea's cumulative installed capacity far exceeds one year of global new installations.
Investment and research and development (R&D) spending by domestic fuel cell manufacturers and partner firms is estimated at approximately 2 trillion won.
However, the Ministry of Climate, Energy and Environment is reportedly considering suspending or significantly reducing the mandatory supply volume for the general hydrogen power market under the Clean Hydrogen Portfolio Standard (CHPS) through this month's CHPS bidding notice. CHPS is a system requiring power generation operators to mandatorily purchase electricity produced from fuel cells, divided into a general hydrogen power market centered on fuel cells and a clean hydrogen power market centered on low-carbon fuels. The government views it as problematic that most domestic fuel cells run on "gray hydrogen" based on fossil fuels such as liquefied natural gas (LNG).
