At one stage today, the ASX tech share was up almost 120% to 21 cents.

The 3D geospatial data technology company's shares have eased back since then but remain up a solid 67% to 16 cents currently.

Why is this ASX tech share skyrocketing?

Investors have been scrambling to buy Pointerra's shares after it announced a major contract win.

According to the release, the company's existing customer, Entergy Corp (NYSE: ETR), has selected Pointerra's US Engineer, Procure & Construct (EPC) partners for its 10-year, US$15 billion grid resilience CAPEX Program.

Entergy is a US$21.9 billion (A$32.7 billion) Fortune 500 company that provides power to 3 million customers throughout Arkansas, Louisiana, Mississippi and Texas. The release notes that the Louisiana-based energy utility company plans to spend US$15 billion on an electric grid resilience CAPEX program.

The company's Pointerra3D product will be used to process and analyse 3D LiDAR and 2D imagery to build a digital twin of Entergy's electricity network. This will then allow Entergy and its EPC contractors to use Pointerra3D's world-first quick load electric grid assessment tools to rapidly assess and prioritise the works to be completed in the most cost-effective and efficient manner possible.

Over the term of the program, the ASX tech share will be paid a price per pole/structure inspected and analysed using Pointerra3D.

At present, the company expects that up to 4 million poles could be inspected and analysed using Pointerra3D during this time.

And while a rate has not been finalised for this program, management expects it to be similar to previous rates of between US$20 and $40 per pole. This suggests that the contract could be worth US$80 million to US$160 million over its life, with revenue expected to commence during FY 2024.

The post This little ASX tech share is skyrocketing 120% amid a deal with $33 billion energy company appeared first on The Motley Fool Australia.