Electricity demand is going to soar. That's according to the International Energy Agency, which projects global electricity demand will grow by over 3.5% annually through this decade.
GE Vernova (GEV 1.97%) is in an excellent position to benefit from the growing demand for electricity. The company has a massive fleet of energy equipment, including gas, steam, and wind turbines, as well as power grid infrastructure.
Here's why buying the stock today could be a smart investment long-term.
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GE Vernova's backlog has surged
Hyperscalers are increasingly turning to GE Vernova to meet their growing appetite for energy, and the company is experiencing robust demand for its gas turbines, grid equipment, and other services driven by the surge in artificial intelligence (AI) usage.
In 2025, the company signed over $2 billion in electrification orders for data centers, triple the total from the year before. This robust demand is driving record results and a growing backlog of capacity commitments. At the end of last year, the company's electrification segment backlog grew to $35 billion, a 46% growth from the prior year.
NYSE: GEV
Key Data Points
Because AI data centers rely on baseload power, demand for GE Vernova's dispatchable gas turbines has exploded. In the fourth quarter, the company logged 24 gigawatts of new gas contracts. Meanwhile, its gas power equipment backlog and slot reservation agreements (in which customers pay to hold a spot in line) surged to 83 gigawatts, up from 62 gigawatts in the previous quarter.
A push for more energy capacity benefits GE Vernova
The company also stands to benefit from recent news. On Jan. 16, Reuters reported that the White House, through the National Energy Dominance Council, and 13 state governors in the PJM interconnection region agreed on a joint statement of principles to address growing energy needs and rising utility prices. As part of this statement, lawmakers encouraged PJM to conduct a one-time emergency auction to secure new base-load power generation and called on large tech companies to bid for 15-year contracts.
This news affected utility providers such as Constellation Energy and Vistra, which operate under a merchant power model that benefits from rising utility prices. However, because regulators want to prevent utility price hikes from hitting average household consumers, they want hyperscalers to pay for the build-out. This is bullish for a company like GE Vernova, which produces gas turbines and other generation equipment that could help hyperscalers meet their growing electricity needs quickly.
GE Vernova CEO Scott Strazik stated that the company is motivated to meet the demand, is actively expanding, and expects to increase its gas turbine annual production capacity to approximately 20 gigawatts starting in mid-2026.
GE Vernova's long-term advantage
GE Vernova has a massive installed base, with its equipment generating roughly 25% of the world's electricity. This means the company has a strong advantage not just with its equipment, but also with long-term service agreements for maintenance, repairs, and upgrades. With demand for data center electricity expected to boom in the coming years, GE Vernova is an excellent stock to own as it meets this growing demand.
