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Simon Bullough, CTO of ITM Power, said that the company is in discussions with potential customers about how its electrolysis technology could fit into data-center energy systems
In sum – what to know
Potential role – ITM Power CTO Simon Bullough says green hydrogen could help address data centers’ energy needs and backup-power requirements.
Commercial caution – Bullough says hydrogen decarbonization in data centers lacks the same incentives available to industries such as refining.
Structured approach – ITM is discussing potential applications with prospective end users, examining how electrolysis, data centers, and renewable power could work together.
ITM Power sees a potential role for green hydrogen in data centers but cautions that the application is attracting more attention than its current commercial development may justify.
Speaking during the company’s results conference call, Simon Bullough, CTO of ITM Power, said data centers’ energy requirements and need for backup capability could create opportunities for hydrogen. However, he said the commercial incentives for decarbonizing data centers differ from those available to established hydrogen-consuming industries.
“Well, I think green hydrogen does have a role. Data centers are energy intensive, and they also require a lot of backup capability. But honestly, I think it is slightly over-hyped at the minute. Hydrogen for decarbonizing data centers is not incentivized in the same way as refineries, for example,” Bullough said.
He added that ITM is in discussions with potential customers about how its electrolysis technology could fit into data-center energy systems.
“Having said that, we are in discussions with some prospective end users, looking at how electrolysis can best integrate with data centers and renewable power to really play to the strengths of the technology. But we are doing that in a very structured bottom-up way, rather than engaging with perhaps what I would call a little bit of an overhype for this particular application,” he said.
Hydrogen fuel cells have already been tested as a potential source of backup electricity for data centers. In 2024, the U.S. Department of Energy reported the successful completion of a megawatt-scale demonstration at Microsoft’s data center in Cheyenne, Wyoming.
The project involved Caterpillar, Microsoft and Ballard Power Systems, with Caterpillar leading system integration and Ballard supplying a 1.5-megawatt hydrogen fuel cell. The demonstration simulated a 48-hour power outage. The U.S. National Renewable Energy Laboratory also analyzed safety, techno-economic factors and greenhouse-gas impacts.
The demonstration provides an example of hydrogen fuel cells being tested for data-center backup power. It is distinct, however, from the potential application Bullough described: integrating electrolysis and renewable electricity into data-center energy systems.
ITM Power designs and manufactures proton-exchange membrane (PEM) electrolysers that produce hydrogen using electricity. The company’s wider business focuses on developing and manufacturing technology for green hydrogen production.
For data centers, the potential relationship between electrolysis, renewable power, and energy demand remains an area of exploration, according to Bullough. His comments suggest that ITM is taking a measured approach to assessing the opportunity rather than treating data centers as an established growth market for its technology.
