Investing.com -- Residential solar and battery systems company Sunrun (NASDAQ:RUN) Inc. is in discussions with data center developers to supply them with distributed solar power, according to a report from Bloomberg on Monday.
Following the report, Sunrun shares surged, currently up more than 6%.
The potential collaboration marks a strategic move for Sunrun as it seeks to expand beyond residential energy into the booming data center sector.
According to Bloomberg, CEO Mary Powell shared details about the talks at the Dervos 2024 conference, held at the Brooklyn Navy Yard. While Powell kept specifics under wraps due to non-disclosure agreements, she described the company’s exploration of "a couple different really cool models" for working with data center developers.
The options could include creating bespoke solar power systems in partnership with electric utilities or utilizing existing solar installations in nearby communities to meet data centers' energy needs.
“It’s just a radical collaboration that has incredible benefits for everyone,” Powell said at the event, according to Bloomberg.
The potential partnership highlights the growing demand for sustainable power solutions driven by the rapid construction of data centers, many of which are being built to support artificial intelligence workloads.
Powell's comments reflect a broader opportunity for energy companies to reshape the U.S. power grid in response to rising electricity needs.
However, Powell acknowledged the challenges of modernizing energy infrastructure.
“I think it’s the force of 100-plus years way of thinking,” she noted, urging industry stakeholders to embrace innovative approaches to meet the demand for renewable energy solutions, said Bloomberg.