GE Vernova Inc. and NRG Energy Inc. have partnered in a joint venture (JV) to rapidly develop new power generation capacity. The initiative responds to the increasing electricity demands of data centers and artificial intelligence (AI) companies.
The JV’s initial focus will be on bringing four projects online, together representing a combined capacity of 5 gigawatts (GW). These natural gas combined-cycle power plants are slated to serve the ERCOT market in Texas and the PJM markets.
The PJM interconnection region encompasses all or parts of the District of Columbia and 13 states, including Pennsylvania, New Jersey, Maryland, Delaware, Illinois, Indiana, Kentucky, Michigan, North Carolina, Ohio, Tennessee, Virginia, and West Virginia.
“The first 1.2GW is expected to commence commercial operation in 2029 with two 7HA gas turbines secured under a slot reservation agreement with GE Vernova,” according to a joint statement. “Subsequent projects will be targeted to come online through 2032.”
“The model is replicable and scalable, with the potential to fill a future pipeline of 10-15GW and expand to other areas across the U.S.,” the companies stated. “Through their innovative efforts and focus on efficient practices, these industry leaders aim to shorten the concept-to-electron timeline, ensuring that electricity generation capacity is quickly brought online to help meet demand.”
Robert J. Gaudette, president of NRG business and wholesale operations, noted that the growing demand for electricity, driven partly by generative AI (GenAI) and the expansion of data centers, necessitates such innovative partnerships to accelerate America’s dispatchable generation.
Dave Flickinger, executive vice president of GE Vernova’s parent Kiewit Corp., highlighted their long-standing experience as an engineering, procurement, and construction (EPC) contractor. He stated their track record will aid the venture in meeting the speed, safety, quality, and delivery demands while serving as a strong partner to NRG and GE Vernova.
NRG currently manages approximately 13 GW of electricity production capacity across 18 facilities, serving around 7.5 million customers. NRG’s energy portfolio includes gas, coal, and renewable energy sources.
Data center load growth in the United States has tripled over the past decade. According to a December 20, 2024, report by the Energy Department’s Lawrence Berkeley National Laboratory, it’s projected to double or triple again by 2028. When data centers are expected to account for roughly 6.7% to 12% of total U.S. power consumption.
Data center power usage climbed from 58 terawatt-hours (tWh) in 2014 to 176 tWh in 2023. The report projects the sector’s power consumption to surge to between 325 and 580 tWh by 2028.
