Industrial Development Funding and Oaktree have announced a $1.7 billion project investment supporting the deployment of Bloom Energy fuel cells for Nebius’ artificial intelligence cloud infrastructure.
The investment forms part of a broader commitment to finance Bloom Energy technology for large-scale AI computing facilities.
Industrial Development Funding, known as IDF, is serving as the lead developer for the Nebius project.
Oaktree is participating as a minority equity investor.
Morgan Stanley is the project’s sole tax equity investor and served as placement agent for the tax equity financing.
MUFG Bank provided senior debt financing.
The project will use Bloom Energy’s fuel cell systems to provide dedicated behind-the-meter electricity for Nebius’ AI infrastructure.
Behind-the-meter generation produces electricity at or near the location where it will be consumed, rather than relying exclusively on power delivered through the broader electrical grid.
This approach can give data center operators additional control over power availability, infrastructure deployment and energy planning.
Once completed, the project is expected to help Nebius meet growing demand for the computing capacity supporting its AI cloud platform.
AI training and inference workloads require substantial amounts of electricity, particularly as developers deploy larger models and expand their computing clusters.
Power availability has consequently become an important factor in how quickly AI infrastructure providers can bring new computing capacity online.
Nebius selected Bloom Energy based on the company’s deployment speed, power technology and ability to support the performance and availability requirements of AI workloads.
Bloom Energy develops fuel cell systems that generate electricity through an electrochemical process rather than conventional combustion.
The systems can be installed near data centers and other large electricity users, providing an alternative or supplement to grid-delivered power.
For AI infrastructure operators, on-site power can help address delays associated with securing new utility connections or expanding transmission capacity.
The financing structure combines equity, tax equity and senior debt to support the project’s development and deployment.
Tax equity financing allows an eligible investor to provide capital in exchange for certain tax benefits generated by an energy project.
Senior debt generally holds priority over other forms of project capital and is repaid from the project’s contracted or operating cash flows.
The participation of multiple institutional financing providers creates a capital structure intended to fund the project at scale.
IDF said the transaction reflects its strategy of pairing institutional capital with infrastructure needed by energy-intensive industries.
The investment firm provides customized financing solutions across digital infrastructure, power, transportation and industrial markets.
The Nebius project also expands IDF’s existing relationship with Bloom Energy.
IDF and Bloom have worked together on multiple transactions representing a diversified portfolio of more than $2.6 billion in Bloom Energy projects.
Oaktree’s participation reflects the investment manager’s focus on infrastructure assets supplying critical power to digital operations.
The firm managed approximately $224 billion in assets as of March 31, 2026.
Morgan Stanley’s tax equity participation supports the deployment of the behind-the-meter power systems while adding another institutional source of project capital.
MUFG’s senior financing provides debt capital for the project’s construction and implementation.
The transaction demonstrates how energy technology providers, infrastructure developers, banks and investment firms can work together to address the power requirements of AI data centers.
Bloom Energy said AI infrastructure customers require both suitable power technology and financing structures capable of supporting rapid deployment.
The companies expect the project to provide Nebius with dedicated electricity capacity while supporting the continued expansion of its AI cloud services.
KEY QUOTES:
“By bringing together institutional capital and critical power infrastructure, IDF and Bloom are unlocking the next generation of energy solutions and are proud to help Nebius meet the energy demands of the AI economy.”
Nik Nunes, Chief Executive Officer of Industrial Development Funding
“Oaktree is focused on investing in infrastructure assets delivering critical power to the digital space. This transaction reflects our confidence in Bloom’s fuel cell technology and those relying on it.”
Austin Pearson, Managing Director at Oaktree
“AI infrastructure customers need more than innovative technology. They also need a path to finance and deploy power rapidly. Our collaboration with IDF demonstrates how institutional capital can help accelerate the build-out of AI infrastructure.”
Aman Joshi, Chief Commercial Officer of Bloom Energy
“Morgan Stanley is proud to partner with IDF, Bloom Energy and Nebius on this landmark behind-the-meter transaction delivering rapid power solutions to critical AI infrastructure.”
Jorge Iragorri, Co-Head of Infrastructure Capital Markets at Morgan Stanley
“MUFG is pleased to support Nebius, IDF and Bloom on this landmark transaction, which provides an innovative and efficient solution for data center power demand while meeting the needs of the local community.”
Fred Zelaya, Managing Director of Project Finance at MUFG
