Plug Power sells Texas project, restructures NY deal for $80M liquidity

Plug Power secured more than $80 million in near-term cash through two asset sales to Stream Data Centers, part of a broader push to unlock over $275 million in liquidity.

Plug Power sold its Graham, Texas project and restructured the sale of its New York Gateway facility to Stream Data Centers, unlocking more than $80 million in near-term cash as the hydrogen company works to shore up its balance sheet and expand into the data center power market.

"Monetizing these assets was a key part of our strategy this year, coupled with the continued improvements in margin and cash flows to fund the business," Jose Luis Crespo, chief executive officer and president of Plug Power, said.

The Texas transaction, comprising land and 164 megawatts of grid interconnection rights, is valued at up to $76.5 million, with $50 million due at closing expected July 31 and as much as $26.5 million contingent on the final interconnection agreement with the local utility. The deal should also release about $14 million in cash collateral tied to letters of credit, bringing total expected liquidity from the sale to roughly $90.5 million. In New York, Stream will pay $142 million for the Gateway Project under an amended agreement that includes a $10 million escrow deposit and extends the final closing deadline to March 31, 2027, pending state environmental and regulatory reviews.

Plug held $162 million in unrestricted cash as of June 30 before these transactions. The combined proceeds address a persistent concern among investors about the company's cash runway as it scales hydrogen production across plants in Georgia, Tennessee and Louisiana capable of producing 40 tons per day. Stream and Plug are also exploring opportunities to deploy Plug's fuel cell products into the data center industry, opening a potential new revenue channel tied to the AI infrastructure buildout.

The Graham sale marks a shift in how Plug monetizes its project pipeline. Rather than developing the site for hydrogen production, the company is selling the land and interconnection assets — a faster path to cash that avoids the capital-intensive construction phase. The 164 MW of grid interconnection capacity is valuable to data center operators racing to secure power for AI workloads, a dynamic that drove Stream's interest. Data center power demand in the US is projected to grow at a 15 percent annual rate through 2030, according to industry estimates, making interconnection assets a scarce commodity.

Plug's partnership with Stream extends beyond these two transactions. The companies said they are actively exploring ways for Plug to deploy its hydrogen fuel cells and electrolyzers into data center operations, where backup power and on-site generation are becoming critical as grid constraints tighten. For Plug, that represents an expansion beyond its core markets of material handling and industrial applications, where it counts Walmart, Amazon, Home Depot, BMW and BP as customers. The company has deployed more than 74,000 fuel cell systems and over 280 fueling stations globally.

The liquidity initiative targets more than $275 million in total improvement through asset sales, restricted cash releases and reduced maintenance expenses. Additional releases of restricted cash are advancing, Plug said, without providing specific amounts or timelines. The company employs more than 730 people in New York and nearly 200 in Texas, and its fuel cell-powered forklifts at 31 customer facilities help avoid nearly 95,000 megawatt-hours of annual electricity consumption.

For investors, the transactions provide near-term relief on Plug's most pressing risk: cash burn. The company has not yet disclosed second-quarter results, but Crespo said Plug is on track with its financial goals for 2026. The data center opportunity, if realized, could give Plug a new growth vector beyond its traditional industrial customer base, though the partnership remains in the exploratory phase with no committed revenue or deployment timeline.

This article is for informational purposes only and does not constitute investment advice.