GE Vernova CEO Scott Strazik explained that the AI-driven surge in data center demand is rapidly transforming the company’s customer base, with hyperscale tech firms becoming a major source of orders alongside traditional utilities. He highlighted the company’s investments in expanding manufacturing to meet this demand, the shifting energy landscape favoring gas and nuclear over wind, and the challenge of balancing rising costs with the need to keep energy affordable.
Scott Strazik, CEO of GE Vernova, discussed how the surge in artificial intelligence (AI) and data center demand is transforming the company’s customer base and business outlook. GE Vernova, an energy technology company, is experiencing unprecedented demand for its gas turbines and related equipment, with its order backlog nearly doubling from 46 gigawatts to 80 gigawatts in just one year. Strazik emphasized that the company is investing heavily in expanding manufacturing capacity across its U.S. factories to meet this demand, particularly as more power plants are being built to support the growing need for reliable electricity.
The conversation highlighted the shifting landscape of energy sources. While gas and nuclear are gaining momentum, wind energy—especially offshore wind—has seen a significant decline in orders due to a complicated policy environment and economic challenges. Strazik noted that wind is currently the softest segment in GE Vernova’s portfolio, whereas nuclear energy, particularly small modular reactors, is attracting increasing interest both in North America and Europe. He acknowledged that political administrations often favor certain technologies over others, and GE Vernova adapts its strategy accordingly.
A major change for GE Vernova is the evolving mix of its clients. Traditionally, utilities were the primary customers, but now hyperscale technology companies—such as those operating large data centers—are becoming a significant part of the order book. In 2020, hyperscalers represented a negligible share of orders, but by 2025, they are expected to account for 10%, and potentially 25% by 2026. These companies are securing long-lead equipment to ensure they have the power needed to support their data and AI operations, reflecting the critical role of electricity in the digital economy.
Strazik also addressed the challenges of planning for the long term amid shifting political priorities and global polarization. He stressed the importance of building a resilient business model by investing in local supply chains and manufacturing capabilities to serve regional markets. Despite the complexities of international relations and trade tensions, GE Vernova remains confident in its global investments and strong customer relationships, while recognizing the need to continually earn trust in both domestic and international markets.
Finally, Strazik discussed the balance between rising input costs, surging demand from well-funded hyperscalers, and the need to keep energy affordable for consumers. He believes that the current growth cycle presents an opportunity to drive down costs through increased volume, investment in automation, and innovation in manufacturing. While the early stages require significant investment, Strazik is optimistic that GE Vernova will ultimately deliver more cost-competitive products and meet the affordability challenge as the energy transition accelerates.