Booming Power Demand Means Longer Wait for GE Vernova Customers

(Bloomberg) -- GE Vernova Inc. said surging demand for electricity is causing a substantial increase in wait times for its gas turbines, with some deliveries set for the end of the decade.

The Cambridge, Massachusetts-based maker of power generation equipment said orders placed now are seeing delivery in 2028, and it’s already in discussion with customers about fulfilling orders in 2030. GE Vernova said it added 7 gigawatts to its backlog in the first quarter, to 29 gigawatts.

“It’s an indication of the continued strength in gas demand,” Chief Executive Officer Scott Strazik said in an interview. “We’re going into a phase where the market knows they need more gas for longer.”

The company’s shares jumped as much as 10% in early trading Wednesday, as the company reported first-quarter adjusted Ebitda that beat Wall Street expectations.

Power demand is booming in the US, driven by data centers and artificial intelligence along with new factories and the overall electrification of the economy. That has created greater appetite for gas generation, which can provide a steady supply of power but also emits carbon.

The emergence of Chinese AI startup DeepSeek earlier this year, which purports to be more energy-efficient than major US rivals, had prompted questions about some of the more bullish forecasts for power demand. GE Vernova’s backlog is “an encouraging sign of continued visibility into demand,” analysts at JPMorgan wrote in a note.

Strazik told analysts on an earnings call that about a third of its turbines were for data centers.

GE Vernova customers have also reserved another 21 gigawatts of gas turbines that won’t enter the backlog until the customers have reached steps like selecting a site and obtaining permits, Strazik said. A gigawatt is akin to the capacity from one nuclear reactor and can power roughly 750,000 homes.

The success of GE Vernova’s gas business stands in stark contrast with the challenges facing wind, where the company saw a 43% drop in orders. GE Vernova also took a $70 million charge related to its last remaining offshore wind supply agreement, which was for large 18 megawatt turbines.

(Story updates with information from earnings call throughout.)

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