Plug Power to unlock $275 million, pivot toward data center power market

Plug Power (PLUG.O), expects to generate more than $275 million by monetizing assets, releasing restricted cash and lowering maintenance expenses, it said on Monday, as the hydrogen fuel cell maker shifts focus to higher-return opportunities and the fast-growing data center market.

Shares of the company were up over 10% in premarket trade.

The company signed a non-binding letter of intent to monetize its electricity rights in New York and another U.S. location, and to partner with a domestic data center developer expanding facilities across the country.

Plug said the collaboration will explore using its hydrogen-powered fuel cells to supply backup and auxiliary power for data centers, a sector facing rising demand for reliable, low-carbon energy.

The move underscores Plug’s shift toward higher-return projects and its push to commercialize hydrogen technology in energy-intensive industries.

The company said it would suspend participation in the U.S. Department of Energy’s loan program and redirect capital to faster-payback opportunities across its hydrogen network.

Plug had over $140 million in unrestricted cash and cash equivalents as of June 30.

Plug Power said on Monday it will continue to evaluate hydrogen production and infrastructure projects aligned with its long-term cost and growth goals.