Sunrun stock surged Wednesday after the solar-energy company said it would team up with home-energy management platform Renew Home and electric-vehicle manufacturer Tesla to power data centers.

Shares of Sunrun jumped 30% to $16.66 in early trading. Tesla stock slipped 0.1%. The S&P 500 was 0.2% higher.

Sunrun, Renew, and Tesla said on Wednesday they had agreed to deliver more than 16 gigawatts of flexible energy capacity to hyperscalers and utilities.

The companies are forming a power plant that would draw power from Sunrun and Tesla home battery systems and Renew smart thermostats.

"The grid of the 1800s cannot power the innovation of 2026," said Sunrun CEO Mary Powell. "Americans deserve innovation that does not create unnecessary energy costs."

The artificial-intelligence boom has driven up demand for electricity in the U.S., putting strain on existing power infrastructure.

Better utilization of the existing grid could reduce electricity bills by $110 billion to $170 billion over the next decade, according to analysis by the economic consulting firm the Brattle Group.

Sunrun is likely to wipe out most of its losses for 2026 thanks to Wednesday's gains. The stock was down 30% for the year through Tuesday's close, dragged down by cautious guidance.

Write to George Glover at george.glover@dowjones.com

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(END) Dow Jones Newswires

June 24, 2026 10:03 ET (14:03 GMT)

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