Gas Turbine Prices Soar as AI Demand Fuels Natural Gas Boom
Natural gas has made a significant comeback in recent years, driven by demand for power from artificial intelligence data centers. This surge in demand has sent shares of leading gas turbine and services companies soaring.
The growth is evident in the rising prices of gas turbines, which are on track to nearly triple since 2019. According to industry analyst Wood Mackenzie, gas turbine prices have increased by 195% since then.
GE Vernova's remaining performance obligations (RPO) have grown significantly during this period, standing at $176 billion and expected to reach $200 billion in 2027. The company's CEO, Scott Strazik, is confident that the order pipeline will continue to grow strongly in the coming years.
The growth in gas turbine services also implies growth in natural gas used to fuel these turbines, benefiting companies such as pipeline and storage facilities held in the Global X MLP & Energy Infrastructure ETF. The ETF provides broad-based exposure to 29 relatively high-yielding stocks, with a current yield of over 4%.