GE Vernova is expecting 80 gigawatts in gas turbine contracts before the end of the year

GE Vernova, a manufacturer of power generation equipment, said that it expects to sign 80 gigawatts in combined-cycle gas?contracts before the end of this year - as electricity demand from Big Tech data 'centers - ramps up. The demand for natural gas-powered?turbines has risen as U.S. electricity demand is at record levels due to the proliferation energy-intensive data centres supporting artificial intelligence initiatives.

GE 'Vernova has sold all of its gas-turbines until 2028. CEO Scott Strazik remarked at a conference held for investors that there are less than 10% remaining to be sold the following year.

Strazik did not see any signs of a slowdown in the AI-related investments.

He said that the demand for gas-powered power is expected to grow at an accelerated rate in the fourth quarter and through 2026. "Orders from hyperscalers grew materially in the fourth quarter." Strazik said.

GE Vernova said that it has signed 18 gigawatts worth of gas power 'contracts' so far this quarter. This compares to a total of?8 gigawatts during the first three month of the year.

State and local permits for power plants, and fuel pipelines that are typically difficult to build across states are some of the most significant?obstacles. Reporting by Laila K. Kearney, New York; editing by Cynthia Osterman

(source: Reuters)