The Advanced Power and Energy Program is working with Microsoft Corporation to improve the reliability and the energy efficiency of data centers. After demonstrating and evaluating the use of a 10 kW Proton Exchange Membrane Fuel Cell (PEMFC) stack and system for directly powering the servers in a data center, APEP and Microsoft are initiating the design and testing of a Solid Oxide Fuel Cell (SOFC) system as a Distributed Generation (DG) prime mover that has higher reliability and efficiency, for both steady state and dynamic operation of the servers. SOFC advantages include fuel flexibility, non-precious metal catalyst, completely solid-state cell components, and the production of high quality waste heat for co-generation applications inside the data center.