GE Vernova (GEV 7.73%) makes equipment such as wind turbines and natural gas turbines for the power industry. And according to the International Energy Agency (IEA), global electricity demand has been surging -- up by 4.3% in 2024, an acceleration from its 2.5% rise in 2023.
One big driver of that trend is the technology sector's ambitious buildout of artificial intelligence (AI) data centers. The IEA reported that data centers consumed about 1.5% of the world's total electricity in 2024. More tellingly, the amount of electricity they demand rose at a 12% annualized rate from 2020 through 2024.
GE Vernova's offerings position it perfectly to capitalize on the rising demand for electricity and grid solutions, and not just for data centers. The stock is up about 109% in the past year and more than 470% since the company was spun off from General Electric in the spring of 2024.
Here are a few reasons why GE Vernova could be a good stock to buy for today's AI power trade and for the long-term future of the world's energy sector.
NYSE: GEV
Key Data Points
Rising electricity demand from data centers
On Jan. 28, GE Vernova reported blockbuster fourth-quarter earnings of $13.39 per share, beating analysts' expectations by more than $10 per share. Part of that outperformance was a result of the company's growing sales to data centers.
During the Q4 earnings call, CEO Scott Strazik said that it is seeing strong demand for data center equipment, primarily in the U.S. market. He also noted that the company signed more than $2 billion of orders directly for data centers in 2025, more than tripling its total in that segment from the previous year.
If AI data centers keep getting built at their current aggressive pace, GE Vernova is likely to have a bright future. Deloitte research estimates that by 2035, in the U.S. alone, AI data centers' total power demand could grow by more than 3,000%.
Image source: Getty Images.
Higher global demand for natural gas and renewable energy
However, this company is more than just an AI energy story. Its revenues rose 9% to $38.1 billion in 2025. But only $2 billion of that came from direct orders for data centers. More than half -- $19.8 billion -- came from its power segment, led by robust equipment demand and growth in services for the natural gas power market.
According to the IEA, natural gas demand worldwide rose 2.7% in 2024 to an all-time high, and tacked on another 1% in 2025. The IEA forecasts global gas demand growth of 2% in 2026, with stronger growth in emerging markets.
Renewable energy is another growth opportunity for GE Vernova. The company reported $9.1 billion of revenue in 2025 from its wind segment, with a 9% increase in orders. Global capacity for renewable energy, including solar and wind energy, is expected to more than double by 2030, according to the IEA.
With all this in mind, this global energy company is well positioned to serve a growing market. And with a total backlog of $150 billion worth of projects in the works, GE Vernova appears to have a bright future, no matter what happens next with the AI sector. As such, long-term investors should consider this stock a buy.
