GE Vernova rises on plan to address data center power needs
GE Vernova rose Friday as the market digested reports of Trump administration plans to effectively push hyperscalers to foot the bill for new power plants to feed the giant grid that’s home to some of country’s most data center-dense districts.
In a note, Jefferies analysts called GE Vernova — the maker of turbines for natural gas-fueled power plants — the “clearest winner” of such a plan.
(The need for additional power plants would mean more sales and/or higher prices for its products.)
Jefferies says plans for additional capacity in the PJM grid — a 13-state swath that includes areas of high data center concentration like northern Virginia and Ohio — is a negative for companies like Vistra, Constellation Energy, and Talen Energy, which had invested heavily in the the PJM grid, likely hoping elevated prices would persist. That seems less likely should plans to boost power supply in the grid actually come to pass.
(The need for additional power plants would mean more sales and/or higher prices for its products.)
Jefferies says plans for additional capacity in the PJM grid — a 13-state swath that includes areas of high data center concentration like northern Virginia and Ohio — is a negative for companies like Vistra, Constellation Energy, and Talen Energy, which had invested heavily in the the PJM grid, likely hoping elevated prices would persist. That seems less likely should plans to boost power supply in the grid actually come to pass.
