The Greenville, South Carolina plant of GE Vernova is ramping up production of gas turbines, crucial for powering AI data centers, as evidenced by the hiring of 200 workers last year and plans to add 300 more by year-end.
Major tech companies, referred to as hyperscalers, including Amazon, Google, Microsoft, and Oracle, are increasingly purchasing these turbines to meet their energy needs, particularly as they face grid bottlenecks. GE Vernova's chief commercial officer, Pablo Koziner, emphasized that industrial gas turbines are essential for providing scalable and reliable power.
The turbines, which can power approximately half a million homes each, are in high demand, with orders filled through 2029 and projections extending into 2030 and 2031. The price of these turbines has surged by 300% over the past three years, now exceeding $250 million each, reflecting the escalating capital expenditure budgets for AI infrastructure.
GE Vernova's stock has risen nearly 60% in the last six months, benefiting from this demand surge. However, the company faces challenges from public opposition to data center expansions and environmental concerns, prompting efforts to enhance the sustainability of their turbines, which are now reported to be twice as efficient as those produced two decades ago