
NRG Energy Inc. and GE Vernova Inc. have announced a joint venture (JV) to rapidly add new generation capacity to capitalize on growing demand from data center and artificial intelligence (AI) firms.
Initially the JV will work to bring online four projects with a combined capacity of 5 gigawatts (GW). These natural gas combined-cycle power plants will serve the ERCOT market in Texas and PJM markets. The PJM interconnection region comprises all or parts of the District of Columbia and 13 states: the original core of Pennsylvania, New Jersey and Maryland, plus 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”, a joint statement said. “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 said, “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, commented, “The growing demand for electricity in part due to GenAI [generative AI] and the buildup of data centers means we need to form new, innovative partnerships to quickly increase America’s dispatchable generation”.
Dave Flickinger, executive vice president of GE Vernova’s parent Kiewit Corp., said, “Our long, successful track record as an EPC [engineering, procurement and construction] contractor in the power market will help us meet the speed, safety, quality and delivery demands of this venture – and serve as a strong partner to NRG and GE Vernova”.
NRG has about 13 GW of electricity production capacity across 18 facilities serving around 7.5 million customers, according to the company. Its portfolio comprises gas, coal and renewable energy.
Data center load growth in the United States tripled over the past decade and is projected to double or triple by 2028, when data centers would account for approximately 6.7 percent to 12 percent of U.S. power consumption, according to a report by the Energy Department’s Lawrence Berkeley National Laboratory December 20, 2024.
Data center power usage grew from 58 terawatt hours (tWh) in 2014 to 176 tWh in 2023. The sector’s power consumption is projected to surge to between 325 and 580 tWh by 2028, according to the report.
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