GE Vernova (NYSE: GEV) is a leading provider of equipment such as wind turbines and natural gas turbines for the power industry. With the International Energy Agency (IEA) reporting a surge in global electricity demand by 4.3% in 2024, there is a growing need for solutions to meet this increasing demand.
One major factor driving this trend is the technology sector’s rapid expansion of artificial intelligence (AI) data centers. Data centers consumed 1.5% of the world’s total electricity in 2024, with electricity demand rising at a 12% annualized rate from 2020 through 2024. This presents a significant opportunity for companies like GE Vernova to capitalize on the growing demand for electricity and grid solutions.
GE Vernova’s offerings are well-positioned to benefit from the rising demand for electricity, not only from data centers but also from other sectors. The company has seen impressive growth, with its stock rising by about 109% in the past year and over 470% since its spin-off from General Electric in 2024.
One of the key drivers of GE Vernova’s success is its strong performance in the data center market. The company reported blockbuster fourth-quarter earnings, beating analysts’ expectations by a significant margin. CEO Scott Strazik highlighted the strong demand for data center equipment, particularly in the U.S. market, with the company securing over $2 billion in orders for data centers in 2025.
Looking ahead, GE Vernova is well-positioned to capitalize on the continued growth of AI data centers. Deloitte research estimates that by 2035, AI data centers’ total power demand in the U.S. could increase by more than 3,000%. This presents a significant growth opportunity for the company.
In addition to the data center market, GE Vernova’s revenues have been driven by its power segment, with robust demand for equipment and services in the natural gas power market. The IEA reports a steady increase in global natural gas demand, with forecasts of continued growth in the coming years, especially in emerging markets.
Furthermore, GE Vernova has a strong presence in the renewable energy sector, with substantial revenue generated from its wind segment. The company is well-positioned to benefit from the expected doubling of global renewable energy capacity by 2030, according to the IEA.
With a total backlog of $150 billion worth of projects in progress, GE Vernova has a promising future ahead. Investors looking for long-term growth opportunities in the energy sector should consider this stock as a strong buy.
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