AES - AES surges on expanded renewable energy deal with Microsoft

AES Corp. (NYSE:AES) +4.5% in Wednesday's trading, bouncing off YTD lows, after unveiling a 20-year agreement with Microsoft to provide renewable energy to its data centers in California. AES (AES) said the deal expands upon prior renewable energy agreements between the companies, with AES supporting Microsoft in its goal to have 100% of its electricity consumption matched by zero-carbon energy purchases by 2030. The company will source the energy from a portfolio of 110 MW AC solar and 55 MW, four-hour storage projects in the California Independent System Operator region. AES Corp. (AES) is "highly leveraged relative to peers, which is perhaps its most significant risk," but shares are undervalued relative to earnings growth, Power Hedge writes in an analysis posted on Seeking Alpha.

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AES surges on expanded renewable energy deal with Microsoft