Amazon, Ge Vernova sign the agreement to stimulate the growth of the data center

• Amazon and Ge Vernova combine on power solutions for data centers.
• In the United States, grid operators find it difficult to keep up with the rate of demand from the data center demand.
• Large technological companies explore alternative solutions to obtain food for their sites more quickly.

Amazon and Ge Vernova signed a strategic framework agreement to help feed the rapid expansion of the Cloud supplier data center, the two companies said in a press release on Tuesday.

Under the agreement, Ge Vernova will help Amazon connect its international fleet of increasing data centers to the electrical network thanks to a major expansion of electrical equipment, project management and construction support. Companies will also associate with renewable energy projects, and Amazon will work with the accelerator activities of Ge Vernova to explore new forms of electricity production for data centers.

The terms of the agreement have not been disclosed.

Amazon, as well as other large technological companies, spends hundreds of billions of dollars on the expansion of the data center to advance artificial intelligence technology. Amazon plans to allocate $ 100 billion in capital spending This year, mainly on the expansion of its Cloud and AI infrastructure.

The development boom has increased energy demand in the United States for decades, and grid operators find it difficult to keep the pace of growth.

Consequently, the operators of the data center associate with energy companies to explore a range of alternative options to obtain energy from their sites more quickly. Last year, Amazon signed an agreement with Talen Energy to use the power of his Susquehanna nuclear power plant in Pennsylvania.

Ge Vernova builds and implements electrical energy systems and equipment for energy sources such as natural gas, hydroelectricity, wind, nuclear and steam. The company’s gas division experienced significant growth in orders in 2024 for natural gas turbines, partly due to the request for the data center, said CEO Scott Strazik during a results call in January.

The company’s natural gas turbines provide energy on the first Stargate site in Abilene, Texas. Stargate is a joint initiative of $ 500 billion by Openai, Oracle, SoftBank and the White House to build an IA infrastructure.

Amazon and Ge Vernova did not immediately respond to requests for comments.

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