AI-Driven Turbine Shortage Drives Prices Up, Profit for Select Companies

The artificial intelligence industry's insatiable demand for natural gas power turbines is driving up prices. By the end of next year, the per-kilowatt cost could be 195% higher than in 2019, according to Wood Mackenzie.

This surge in demand has led to a shortage of gas turbines. However, companies capable of making these heavy equipment are benefiting from the rising prices.

GE Vernova is one such company, with last quarter's organic revenue growth of 12% driven by 14% growth in its power division, which includes gas turbines. The unit's total orders jumped 134% year over year in Q2, beefing up its backlog by $13 billion.