GE Vernova expects 80 gigawatts of gas turbine contracts by year's end

Dec 9 (Reuters) - GE Vernova GEV.N expects 80 gigawatts of signed combined-cycle gas turbine contracts by the end of the year as electricity demand from Big Tech's data centers ramps up, the manufacturer of power-generation equipment said on Tuesday.

As U.S. power demand reaches record highs due to the proliferation of energy-intensive data centers supporting artificial intelligence initiatives, demand for turbines and other equipment to produce electricity from natural gas has increased.

GE Vernova has sold out of its gas turbines through 2028 and has less than 10% left to sell the following year, CEO Scott Strazik said at a conference for investors.

On the prospect of AI-related investments developing into a bubble, Strazik said he didn’t see signs of any slowdown.

“What we’re seeing in the fourth quarter, and into 2026, is accelerating growth in demand,” he said. “Orders in the fourth quarter growing materially from hyperscalers.”

Going forward, data centers are expected to account for about a third of the Massachusetts-based company's gas-power transactions in the U.S., Strazik said.

So far this quarter, GE Vernova has signed 18 gigawatts of gas power contracts, the company said, compared to 8 gigawatts in the first three months of the year.

Some of the biggest obstacles include state and local permitting for power plants and the availability of fuel pipelines, which typically face problems being built across states.