Amazon.com partners with major German utility RWE

Article Excerpt

Through its Amazon Web Services (AWS), Amazon.com is one of the world’s largest providers of cloud infrastructure services. And, like its rivals, it needs lots of electricity to power its operations—including its AI development and service offerings. AMAZON.COM INC., $212.52, remains a buy. The company’s (Nasdaq symbol AMZN; TSINetwork Rating: Average) (www.amazon.com; Shares outstanding: 10.6 billion; Market cap: $2.3 trillion; No dividends paid) has just announced a strategic framework agreement with giant German utility RWE. The deal will see the utility provide clean power delivery and in exchange receive cloud services. The cloud services cover AI and data analytics in exchange for electricity supplied from RWE’s wind and solar facilities, some of which are already in operation and some of which are under construction. Notably, Amazon and RWE have already successfully executed seven Power Purchase Agreements (PPAs) in the U.S. RWE is a major utility in Europe, with a large renewable energy portfolio both in operation and in development, which it can then sell to Amazon…