NRG Energy Inc. (NRG) stock surged 9.26% in the pre-market trading session on Wednesday, February 26, 2025, driven by the company's impressive financial performance and strategic initiatives to capitalize on the growing demand for electricity from emerging technologies like generative artificial intelligence (AI).

The energy giant reported adjusted earnings per share (EPS) of $1.52 for the fourth quarter of 2024, exceeding analyst estimates of $1.29. Moreover, the full-year adjusted EPS of $6.83 surpassed the top end of the company's raised guidance, highlighting NRG's robust operational and financial execution.

In a strategic move, NRG announced a major partnership with GE Vernova and Kiewit to develop up to 5.4 gigawatts (GW) of new gas-fired power generation capacity by 2032. This venture aims to meet the growing demand for electricity from data centers and the rise of generative AI, which requires significant computing power. The first 1.2 GW project is expected to commence operations in 2029.

Additionally, NRG signed Letters of Intent with two leading data center developers, targeting an initial phase of 400 megawatts (MW) of retail power supply, with the potential to scale up to 6.5 GW in the future. These strategic initiatives position NRG to capitalize on the increasing demand for power from emerging technologies and data-intensive applications.

Reaffirming its strong outlook, NRG provided guidance for 2025, projecting adjusted EPS in the range of $6.75 to $7.75 and free cash flow before growth investments (FCFbG) between $1.975 billion and $2.225 billion. The company's robust financial performance and strategic initiatives, including the acquisition of Vivint Smart Home, contributed to the impressive results and positive outlook.