AI inflates gas turbine demand, GE Vernova exec reveals

While AI powers data centers driving GE Vernova‘s gas turbine business, traditional industrial growth remains the company’s primary engine for demand. The energy technology firm’s impressive backlog highlights how broad-based electrification needs across multiple sectors are creating sustained demand for power generation equipment that extends years into the future, revealing a more nuanced picture than the AI-centric narrative often dominating industry discussions.

The big picture: GE Vernova’s gas turbine business is experiencing booming demand, but contrary to popular perception, data centers represent only a small portion of their overall customer base.

• “If you think about … industrialization, electrification, that’s really what I would say is driving the bulk of our orders last year and really into this year,” said Eric Gray, CEO of GE Vernova’s gas power business.
• Data centers are “the one thing that people are most excited to talk about, but it’s probably one of the smaller slivers of what’s actually driving the market today.”

By the numbers: GE Vernova’s order books show extraordinary demand extending years into the future.

• The company currently maintains a 29 gigawatt backlog of turbine orders.
• An additional 21 GW of earlier-stage “slot reservation” agreements are in place, with only about one-third aligned with data centers.
• The company is now booking turbine orders for 2028 and 2029, with 2026 and 2027 largely sold out.

Beyond natural gas: The company is positioning for a lower-carbon future by developing hydrogen capabilities alongside its traditional power portfolio.

• Over 120 GE Vernova turbines are already operating with some level of hydrogen fuel.
• The company sees potential in pairing renewables with hydrogen electrolyzers for cleaner energy solutions.
• GE Vernova is exploring hydrogen-natural gas blends to meet peak electricity demand needs.

Strategic outlook: The company’s vision extends beyond the fossil-versus-renewables debate to encompass a diverse energy approach.

• GE Vernova opposes attempts to gut the 2022 climate law, suggesting policy stability benefits their business planning.
• The company’s portfolio spans gas, wind, nuclear, hydro, and electrification services, reflecting a technology-agnostic approach.
• A $600 million multi-state U.S. manufacturing expansion underscores the company’s confidence in long-term demand growth.