By Jennifer Hiller
NRG Energy, GE Vernova and Kiewit will join forces to build natural gas-fired power plants for tech companies that want city-sized amounts of power in a hurry, the companies said Wednesday.
A new venture between the companies aims to use existing NRG sites to add around 5 gigawatts of new power generation across four locations. Shares of NRG were up around 10% in afternoon trading while GE Vernova was up about 5%.
Target markets for deals, which could be either grid-connected or independent of the grid, include Texas and the PJM Interconnection, the regional transmission organization and electricity market serving Washington, D.C., and 13 states.
The partnership is the latest in a string of announcements from companies pursuing a slice of the AI data center boom, which is driving power demand forecasts higher in many parts of the country.
Chevron and investment firm Engine No. 1 have said they aim to develop natural gas-fired power plants that would provide data centers in the U.S. up to 4 gigawatts of power. Exxon is working on a power-plant design with at least 1.5 gigawatts of capacity that could be paired with carbon capture and storage.
Electricity demand growth projections range, but NRG Chief Executive Lawrence Coben said there is plenty of work for companies across the industry. "We've spent a lot of time looking at this explosion and we're very confident that it's real and that it's happening," Coben said in an interview.
NRG has 21 potential sites with operating or former power plants and "varying degrees of existing infrastructure," said Coben.
GE Vernova is a major supplier of gas turbines, while privately held Kiewit has a subsidiary focused on engineering, construction and procurement.
The first 1.2 gigawatt site would be ready in 2029. Others could come online by the end of 2032. NRG did not put a price tag on the projects but would use a combination of debt and earnings to fund them, Coben said. "A lot of people are already offering to partner with us," he added.
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February 26, 2025 15:04 ET (20:04 GMT)
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