Al Root

GE Vernova stock jumped Wednesday after the power technology company announced it was joining forces with another energy provider and a builder to meet the growing demand for electricity from power-hungry AI data centers.

GE Vernova, NRG, and privately held construction company Kiewit will work on four projects totaling 5 gigawatts of natural gas-fired electricity production, a capacity that's enough capacity to power a few million homes for a year.

The U.S. has about 1,300 gigawatts of total power generating capacity.

The companies expected to the projects to come online between 2029 and 2032. Though the timeline is long, investors are optimistic because GE Vernova should keep growing for years.

In midday trading, GE Vernova was up 6.3% at $337.66 and NRG was up 11.6% at $114.30. The S&P 500 and Dow Jones Industrial Average were up about 0.6% and 0.4%, respectively.

"The growing demand for electricity in part due to GenAI and the buildup of data centers means we need to form new, innovative partnerships to quickly increase America's dispatchable generation," said Robert Gaudette, president of NRG Business and Wholesale Operations, in a statement.

"Working together, these three industry leaders are committed to executing with speed and excellence to meet our customers' generation needs," he said

Meeting that growing demand is a requirement for the power generation industry. It will be good for shareholders, too.

Write to Al Root at allen.root@dowjones.com

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February 26, 2025 11:36 ET (16:36 GMT)

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