(Bloomberg) -- The head of GE Vernova Inc., which makes equipment for wind farms and gas-fired power plants, said electricity demand to run data centers is favoring the fossil fuel over the renewable energy source — at least, for now. 

Onshore wind orders remain “humble,” Chief Executive Officer Scott Strazik told reporters Tuesday in New York, adding that he doesn’t expect immediate improvement since data centers need the constant power generation that natural gas provides. 

“They’re not building those data centers with an assumption for anything other than 24/7 power. Gas is well suited for that,” Strazik said. Onshore wind orders, on the other hand, remain flat, and Strazik said he’s “cautious” on when they’ll improve. 

US demand for electricity had essentially been flat for decades, but the proliferation of data centers, new factories and electric vehicles has upended that trend. Now, utilities are scrambling to provide enough power to desperate customers. GE Vernova is benefiting from that skyrocketing demand, and its shares have more than doubled since it was spun off from General Electric in April. 

Global utility capital expenditures are set to top spending on oil and gas in 2024 for the first time, Strazik said. 

While gas is currently the preferred fuel, data-center customers will “commit to roadmaps that take the carbon intensity of those electrons down,” and eventually that will mean more wind and nuclear power as well, he said. 

Strazik said he expects onshore wind to start growing quickly again within a decade. He added that the company’s gas-turbine customers are eager to combine them with carbon capture systems. He also said that of the approximately 65 gigawatts of GE nuclear plants operating in the US, he sees potential for upgrades and expansion that would provide another three to five gigawatts of power. 

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