- Amazon and GE Vernova are partnering on power solutions for data centers.
- Grid operators in the US struggle to keep pace with surging data center demand.
- Big Tech companies are exploring alternative solutions to get power to their sites quicker.
Amazon and GE Vernova have signed a strategic framework agreement to help power the cloud provider’s rapid data center expansion, both companies said in a press release Tuesday.
Under the agreement, GE Vernova will help Amazon connect its growing international fleet of data centers to the electric grid through major electrical equipment expansion, project management, and construction support. The companies will also partner on renewable energy projects, and Amazon will work with GE Vernova’s accelerator business to explore new forms of power generation for data centers.
The terms of the deal were not disclosed.
Amazon, along with other Big Tech companies, is spending hundreds of billions of dollars on data center expansion to advance artificial intelligence technology. Amazon plans to allocate over $100 billion in capital expenditures this year, mostly on expanding its cloud and AI infrastructure.
The development boom has caused energy demand in the US to surge for the first time in decades, and grid operators are struggling to keep up with the pace of growth.
As a result, data center operators are partnering with energy companies to explore a range of alternative options for getting power to their sites quicker. Last year, Amazon signed a deal with Talen Energy to use power from its Susquehanna nuclear power station in Pennsylvania.
GE Vernova builds and implements electrical power systems and equipment for energy sources such as natural gas, hydropower, wind, nuclear, and steam. The company’s gas division saw significant growth in orders in 2024 for natural gas turbines, partially due to data center demand, CEO Scott Strazik said on an earnings call in January.
The company’s natural gas turbines are providing power at the first Stargate site in Abilene, Texas. Stargate is a $500 billion joint initiative by OpenAI, Oracle, SoftBank, and the White House to build AI infrastructure.
Amazon and GE Vernova did not immediately respond to requests for comment.
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