Renewable energy company GE Vernova (GEV) has teamed up with Amazon Web Services (AWS) in order to help power Amazon’s (AMZN) growing data center needs. The partnership looks to address the increasing demand for global energy while also improving grid reliability and reducing carbon emissions. This is important because big tech companies like Amazon are major energy consumers, especially when it comes to their data centers, which make up the bulk of their carbon emissions.
As part of the deal, GE Vernova will provide AWS with a range of solutions that will help reduce carbon emissions in data centers in North America, Europe, and Asia. Indeed, according to Pablo Koziner, GE Vernova’s chief commercial officer, the company is “well-positioned” to help AWS achieve its sustainability goals. At the same time, AWS will provide cloud services solutions to support GE Vernova’s digital transformation, which is expected to improve growth and efficiency in its operations.
Interestingly, it is worth noting that this isn’t the only data center deal that GEV has announced lately. In fact, the company recently teamed up with NRG Energy and Kiewit to develop four projects that will provide 5 gigawatts of natural gas-fired electricity to AI data centers in the U.S., which is equivalent to powering a few million homes for a year. The projects are expected to come online between 2029 and 2032.
Is GEV Stock a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GEV stock based on 18 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 126% rally in its share price over the past year, the average GEV price target of $426.59 per share implies 37.7% upside potential.
