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GE Vernova to Power City-Sized Data Centers With Gas as AI Demand Soars

Dec 11, 2024 - financialpost.com
GE Vernova Inc. has secured multiple contracts to supply natural gas turbines for data centers, which will consume enough power to illuminate major cities. These turbines are being reserved by big tech companies for their planned 5-gigawatt data center campuses, expected to be operational by 2028. The demand for power, driven by artificial intelligence, new factories, and electrification, is projected to rise significantly, with fossil fuels likely playing a major role in meeting this demand. Despite investments in nuclear energy by companies like Amazon, Alphabet, and Microsoft, gas is seen as a crucial energy source for the near future.

In the past month, GE Vernova has signed 9 gigawatts of gas turbine reservations, with expectations to book 20 gigawatts of global gas orders annually over the next four years, primarily from the US. The company is also engaging with data center developers to reduce emissions, planning to implement carbon capture plants in the next decade. GE Vernova's efforts are part of a broader infrastructure build to ensure energy security and support economic growth, with new US orders for gas turbines to be manufactured at their South Carolina facility.

Key takeaways:

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  • GE Vernova Inc. has signed multiple contracts to sell natural gas turbines for data centers, which will use enough power to light up major cities.
  • Big technology companies are reserving turbines for planned 5-gigawatt data center campuses, aiming to have some facilities operational by 2028.
  • The demand for power is expected to increase due to artificial intelligence, new factories, and electrification, with fossil fuels playing a key role in meeting this demand.
  • GE Vernova plans to start carbon capture plants in the next decade to reduce emissions, with discussions ongoing with data center developers.
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