GE Vernova's data center power equipment orders have surged to $5 billion in the first half of 2025, more than doubling the company's entire prior-year data center revenue.
With a $176 billion backlog and AI data centers needing to build their own on-site power plants to meet exploding electricity demand, the company faces structural tailwinds—though its stock has already risen 57% year to date, trading at a premium valuation of over 40 times next year's projected earnings.
What happened
GE Vernova received $2.7 billion in data center power equipment orders during the second quarter, bringing its year-to-date total to $5 billion—more than double all of last year's data center-related revenue. The company's total backlog now stands at $176 billion, up from $150 billion at the end of 2025, despite completing over $20 billion in business in the interim.
Why it matters
AI data centers are racing to install on-site power plants to meet their electricity needs, and the International Energy Agency projects AI data center electricity consumption will double from 2024 levels by 2030—far outpacing what the utility industry can supply. This structural demand supports GE Vernova's current backlog, which represents nearly five years' worth of current annualized revenue and is likely to grow further.
What to watch
GE Vernova shares are up 57% year to date and 450% over the past two years. The stock trades at over 40 times next year's consensus per-share profit of $24.87. Analysts maintain a consensus 12-month price target of $1,247.66, more than 20% above the current price, with most rating it a strong buy.
Ask the AI about this article →
GE Vernova's explosive order intake reflects a fundamental shift in how AI data centers are approaching their infrastructure needs. As the industry has grown, companies operating massive compute clusters have realized that grid electricity cannot reliably or affordably scale to their requirements—forcing them to build on-site power generation. PwC's projection that AI data center-driven natural gas consumption will more than quintuple between now and 2035 underscores the scale of this structural shift.
The company's $176 billion backlog is significant not just as a number but as a stability signal: it represents nearly five years of revenue at current annualized rates and is projected to expand further. This gives GE Vernova visibility into demand well beyond typical industrial cycles. However, the stock's 57% year-to-date gain and 450% two-year rally have already priced in much of this favorable outlook. At over 40 times next year's projected earnings, the valuation assumes sustained high growth and successful execution—both plausible given the backlog, but neither guaranteed.
For example, today's edition would include:
AI-summarized, only the topics you pick — one digest a day via Email, Slack, or Discord.
Free · takes 30 seconds · unsubscribe anytimeWhat is AIToday? →
Ask AI anything about this article. Q&As are published on this page for other readers too.
Israeli startup DataAgent Ltd
SK Hynix presented a custom HBM concept at SEMICON Taiwan 2026, where compute functions are placed in the base…
Taoyuan is positioning itself as a northern hub for AI data centers (AIDC), citing the Tatan area and an LNG c…
The U.S. Department of Defense announced on August 31 that it has deployed ChatGPT Mil, a customized version o…
Nvidia reported earnings that were both remarkable and boring, reflecting its focus on avoiding a consolidated…
Anthropic has agreed to a $35bn cloud-computing contract with Lambda, a Nvidia-backed cloud provider
