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Can GEV Capitalize on the Exploding Power Demand From AI Data Centers?
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Key Takeaways
GE Vernova sees surging demand for gas turbines as AI data centers need reliable 24/7 power.
GEV backlog grows from 62 GW to 83 GW, signaling strong revenue visibility from rising orders.
GE Vernova's Electrification unit lands $2B data center orders in 2025, tripling 2024 levels.
GE Vernova Inc. (GEV - Free Report) is emerging as a key beneficiary of the rapid buildout of artificial intelligence-driven digital infrastructure, particularly hyperscale data centers. Unlike intermittent renewable sources, data centers require uninterrupted, 24/7 power to support mission-critical computing tasks. This has prompted operators to prioritize dispatchable generation. As a result, GE Vernova is experiencing a sharp increase in demand for its high-efficiency gas turbines, which serve as a dependable backbone for baseload power.
The company's order book has expanded significantly due to increased demand, with its backlog of gas power equipment growing from 62 to 83 gigawatts (GW). This backlog not only reflects strong near-term revenue visibility but also highlights a structural shift in power demand driven by AI infrastructure.
The company’s Electrification segment is experiencing strong and rapidly growing demand for both grid infrastructure and data center-related equipment, coming from a mix of traditional utility and industrial customers worldwide as well as large U.S.-based hyperscalers. Data centers have emerged as a major growth driver, with more than $2 billion in orders tied directly to these projects in 2025 (more than three times the figure recorded in 2024), highlighting how the rapid expansion of AI and cloud computing is significantly boosting demand for power distribution, grid connectivity, and related electrical equipment.
GE Vernova is benefiting from the electrification of the economy and the exponential growth of AI. Its ability to provide both the physical infrastructure and the digital intelligence needed to control power flows positions it for sustained long-term growth.
Companies Scale Up Data Center Capacity
Several other companies positioned to benefit from rising data center demand are discussed below.
Xcel Energy (XEL - Free Report) is advancing its data center pipeline with a newly signed energy service agreement with a large data center in the Upper Midwest, taking its contracted data center capacity to more than 2 GW. XEL remains on track to reach roughly 3 GW of data center capacity by 2026.
Constellation Energy (CEG - Free Report) is strategically positioning itself to fulfill the increasing energy demands from data centers. In February 2026, CEG’s unit, Calpine LLC, entered into a new over 1100 MW agreement with CyrusOne to support a new data center facility at Freestone Energy Center in Texas.
GEV Stock’s Earnings Estimates
The Zacks Consensus Estimate for 2026 EPS indicates a decline of 21.03% and that for 2027 EPS implies an increase of 55.57% year over year.
Image Source: Zacks Investment Research
GEV Stock Trading at a Premium
GEV is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 54.95X compared with the industry average of 22.24X.
Image Source: Zacks Investment Research
GEV Stock’s Price Performance
In the past three months, the company’s shares have risen 30.1% compared with the industry’s 12.6% growth.
View the Zacks #1 Rank List
Image: Bigstock
Can GEV Capitalize on the Exploding Power Demand From AI Data Centers?
Key Takeaways
GE Vernova Inc. (GEV - Free Report) is emerging as a key beneficiary of the rapid buildout of artificial intelligence-driven digital infrastructure, particularly hyperscale data centers. Unlike intermittent renewable sources, data centers require uninterrupted, 24/7 power to support mission-critical computing tasks. This has prompted operators to prioritize dispatchable generation. As a result, GE Vernova is experiencing a sharp increase in demand for its high-efficiency gas turbines, which serve as a dependable backbone for baseload power.
The company's order book has expanded significantly due to increased demand, with its backlog of gas power equipment growing from 62 to 83 gigawatts (GW). This backlog not only reflects strong near-term revenue visibility but also highlights a structural shift in power demand driven by AI infrastructure.
The company’s Electrification segment is experiencing strong and rapidly growing demand for both grid infrastructure and data center-related equipment, coming from a mix of traditional utility and industrial customers worldwide as well as large U.S.-based hyperscalers. Data centers have emerged as a major growth driver, with more than $2 billion in orders tied directly to these projects in 2025 (more than three times the figure recorded in 2024), highlighting how the rapid expansion of AI and cloud computing is significantly boosting demand for power distribution, grid connectivity, and related electrical equipment.
GE Vernova is benefiting from the electrification of the economy and the exponential growth of AI. Its ability to provide both the physical infrastructure and the digital intelligence needed to control power flows positions it for sustained long-term growth.
Companies Scale Up Data Center Capacity
Several other companies positioned to benefit from rising data center demand are discussed below.
Xcel Energy (XEL - Free Report) is advancing its data center pipeline with a newly signed energy service agreement with a large data center in the Upper Midwest, taking its contracted data center capacity to more than 2 GW. XEL remains on track to reach roughly 3 GW of data center capacity by 2026.
Constellation Energy (CEG - Free Report) is strategically positioning itself to fulfill the increasing energy demands from data centers. In February 2026, CEG’s unit, Calpine LLC, entered into a new over 1100 MW agreement with CyrusOne to support a new data center facility at Freestone Energy Center in Texas.
GEV Stock’s Earnings Estimates
The Zacks Consensus Estimate for 2026 EPS indicates a decline of 21.03% and that for 2027 EPS implies an increase of 55.57% year over year.
Image Source: Zacks Investment Research
GEV Stock Trading at a Premium
GEV is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 54.95X compared with the industry average of 22.24X.
Image Source: Zacks Investment Research
GEV Stock’s Price Performance
In the past three months, the company’s shares have risen 30.1% compared with the industry’s 12.6% growth.
Image Source: Zacks Investment Research
GEV’s Zacks Rank
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.