Palantir (NYSE:PLTR) published a press release on Tuesday announcing a partnership with PG&E (NYSE:PCG) aimed at improving electric grid reliability and safety. PG&E has already started using Palantir's Foundry data-analytics software to help improve its electric operations and asset management.
The energy company is California's largest public utilities provider and has been struggling to adequately assess and improve critical infrastructure under difficult conditions. Palantir's software could play an important role in accelerating crucial energy service delivery and safety initiatives. Palantir stock is up roughly 2% on the day as of this writing.
PG&E's powerlines helped create conditions that have sparked wildfires and far-reaching electrical outages in California. The energy provider has already utilized Palantir's data services to make safety-based power shutoff decisions, and the Foundry software will play an ongoing role in wildfire risk assessment.
The deal with PG&E marks the first time that Palantir's software has been adopted by a major U.S. utilities company. However, it looks like Palantir plans on building out its analytics suite with more features and customization tailored to the energy sector.
Palantir plans to add expanded risk assessment and outage investigation functions to its Foundry software, paving the way for more comprehensive process monitoring, response, and improvement. Exactly how much money the data software company will make from the recently announced deal with PG&E has yet to be disclosed, but the press release detailing the multi-year, multimillion-dollar contract points to continued growth initiatives and opportunities in the energy space.