Zeo Energy Corp. (ZEO) stock is trading higher Tuesday after the company announced a cooperation agreement with Ewyze Corp. to develop integrated off-grid power and data-center infrastructure.

The companies plan to focus mainly on projects in the United States. They may also pursue selected international opportunities.

Zeo Targets AI Power Demand

Zeo said the agreement targets growing demand for reliable power tied to artificial intelligence and cloud computing.

AI workloads require large amounts of electricity for model training, inference and other computing tasks. Meanwhile, delays in connecting new projects to the electric grid have created challenges for some data-center developers.

Zeo and Ewyze plan to develop projects that combine dedicated power systems with data-center infrastructure.

Ewyze Plans Off-Grid Microgrids

Ewyze said its team has more than 18 years of renewable energy development experience and has developed about 1.7 gigawatts of renewable power projects globally.

Its proposed microgrids could combine solar power, battery storage and a dispatchable energy source. That source could include natural gas, geothermal power or a grid connection.

The companies said the model could reduce reliance on utility interconnection timelines. Projects could potentially begin operating within two to three years, depending on land, permitting, financing and technical conditions.

Companies Outline Development Strategy

Zeo and Ewyze plan to cooperate on site selection, land acquisition, permitting, engineering, construction and financing. They also plan to work with data-center operators and hyperscale customers.

Zeo operates Sunergy, a residential solar and distributed energy business, and Heliogen LLC, which focuses on long-duration renewable energy generation and storage.

CEO Timothy Bridgewater said demand for AI computing infrastructure and the power needed to support it is growing faster than traditional grids can accommodate.

Ewyze CEO Svante Kumlin said AI infrastructure growth is creating a significant power challenge.

ZEO Price Action: Zeo Energy shares were up 42.61% at $0.44 at the time of publication Tuesday, according to market data. Trading volume reached 367.15 million shares, compared with a 100-day average volume of about 3.83 million shares.