GE Vernova Expands Gas Turbine Production for AI Data Centers

GE Vernova is expanding production of gas turbines at its Greenville, South Carolina plant to meet surging demand from AI data center operators. The company hired 200 workers last year and plans to add 300 more by the end of the year as hyperscalers including Amazon, Google, Microsoft and Oracle line up to purchase the massive turbines. The growth is driven by AI data centers requiring substantial energy and emerging grid bottlenecks, prompting companies to rely on standalone power sources like gas turbines.

GE Vernova Expands Greenville Factory Workforce for Turbine Production

GE Vernova's Greenville, South Carolina facility is the company's largest gas turbine plant. Engineers work alongside factory workers to accelerate production of the complex machines. The turbines measure 31 feet tall and weigh 280 tons, with each unit capable of powering roughly half a million homes. Pablo Koziner, chief commercial and operations officer at GE Vernova, stated that "when you need power at scale and you need firm power, the industrial gas turbine is one of the leading solutions for that."

GE Vernova gas turbine production facility

Executives from nearly every major hyperscaler have visited the factory floor, according to a person familiar with the visits who requested anonymity because the details are not public.

Hyperscalers Order Gas Turbines Through 2031

Microsoft purchased seven turbines to power its data center in Texas, providing 2.7 gigawatts of electricity—enough to power about 3 million homes. GE Vernova turbines are already operational at Elon Musk's xAI Colossus 1 campus in Tennessee, and nearly a gigawatt more are being deployed at OpenAI's Stargate project in Texas, according to Cleanview, an organization that tracks data center development.

Demand exceeds supply, with the order book full through 2029. Koziner added that the company is booking orders into 2030 and 2031. "Today, about 20% of our gas power order book is going to a data center, artificial intelligence-type of application," he said.

Turbine Prices Rise 300% Over Three Years

One turbine can cost more than $250 million, according to industry estimates. Prices have increased 300% in the last 3 years, according to analysts at Melius. The steep price rise contributes to expanding AI capital expenditure budgets, a concern among tech investors.

The spending surge has benefited GE Vernova, with its stock gaining nearly 60% in the past six months.

GE Vernova Improves Turbine Efficiency Compared to Previous Models

GE Vernova is working on making its turbines more environmentally friendly amid public pushback on data center development and growing environmental concerns. "We also put a lot of time and effort into the sustainability of these machines," Koziner said. "And the turbine that you're looking at here is two times more efficient than a turbine that we would have produced 20 years ago."

FAQ

What did GE Vernova do to meet AI data center demand? GE Vernova hired 200 workers last year at its Greenville, South Carolina gas turbine plant and plans to add 300 more by the end of the year to expand production capacity for AI data center customers.

How much does one GE Vernova gas turbine cost? One turbine can cost more than $250 million according to industry estimates, with prices rising 300% in the last 3 years according to analysts at Melius.

Which companies are ordering GE Vernova turbines for AI data centers? Microsoft purchased seven turbines for its Texas data center, GE Vernova turbines are operational at Elon Musk's xAI Colossus 1 campus in Tennessee, and nearly a gigawatt more are being deployed at OpenAI's Stargate project in Texas according to Cleanview.

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