Shares of air conditioning and refrigeration equipment maker Carrier Global Corporation ( CARR ) are trading higher in premarket on Wednesday.

The company has teamed up with Google Cloud to improve energy management and grid adaptability. The partnership will combine Carrier’s battery-powered HVAC systems with Google Cloud’s AI-driven analytics, with the goal of developing smart energy solutions for homeowners.

The initiative is led by Carrier’s Energy division, which specializes in delivering energy solutions for residential clients.

Carrier’s Home Energy Management System (HEMS) will work in tandem with Google Cloud’s AI technologies, such as the WeatherNext AI models created by Google DeepMind and Google Research.

The integration will allow homeowners to optimize their energy storage, giving them the ability to store energy in batteries for use during peak demand times when electricity costs typically increase.

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“Our energy systems must evolve to be more intelligent, flexible and economically efficient,” said Hakan Yilmaz, chief technology and sustainability officer at Carrier and head of the company’s new energy business.

“By integrating Carrier’s HEMS technology with Google Cloud’s AI and analytics, we aim to help increase the efficiency of existing energy infrastructure—reducing grid congestion, unlocking greater energy utilization and contributing to economic growth.”

The increasing electricity demand in the U.S. is fueled by trends such as electrification and the rise of AI. Carrier and Google Cloud are tackling these challenges through real-time energy forecasting and grid interaction.

Their partnership will ensure that Carrier’s HEMS technology helps balance energy supply and demand, particularly during high consumption periods. Additionally, Google’s AI will optimize HVAC operations, boosting energy efficiency and lowering costs for consumers.

The rollout of this initiative will take place in phases, with national adoption expected by 2027.

Price Action: CARR shares are trading higher by 3.14% at $64.02 in premarket at last check Wednesday.

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Image: Shutterstock/ Laylistique.