Amid soaring electricity demand driven by AI data centers, gas turbines have become a critical bottleneck resource. Manufacturer GE Vernova's production capacity constraints have escalated into a fierce booking competition, with customers required to pay non-refundable deposits four years in advance for deliveries scheduled in 2030. The gas turbine manufacturing sector is experiencing a rare boom cycle.

The company's stock reached a new high on Monday, accumulating gains exceeding 500% since its spinoff from GE Aerospace at the beginning of 2024.

On Monday, Canadian power producer Maxim Power announced a sales reservation agreement with GE Vernova to "secure a manufacturing slot for one 7HA.02 gas turbine and generator set." Under the agreement, Maxim must pay a non-refundable deposit in 2026, while the final price of the turbine will be negotiated at a later date. This model of paying a deposit to reserve capacity before price negotiations highlights the supplier's strong market position.

GE Vernova CEO Scott Strazik stated on January 28 that he expects the company's order backlog to reach 100 gigawatts by the end of this year, with capacity for 2029 and 2030 nearly fully booked by that time.

The supply-demand imbalance is directly reflected in the stock's performance. GE Vernova's share price rose 2.9% on Monday, closing at $801.54 after hitting a new 52-week high during the session. Surging power demand has also prompted Wall Street to significantly raise profit forecasts; analysts now project the company's 2030 EBITDA to approach $17 billion, a substantial increase from the approximately $9 billion forecast just a year ago.

**Capacity Crunch: Backlog Nears Production Limits** GE Vernova's capacity constraints have reached an unprecedented level. As of the end of 2025, the company's gas power order backlog stood at 83 gigawatts, while its annual production capacity for this year has only been increased to 20 gigawatts. Based on this, existing orders already fill the production line for over four years into the future.

While reservation systems and deposits are part of GE Vernova's standard business model, the company is selling out its capacity for the late part of this decade at an unexpectedly rapid pace. The projected increase from 83 GW to 100 GW by year-end implies the addition of roughly 17 GW of new orders in 2026, equivalent to nearly a full year of the company's production capacity.

Earlier this month, Xcel signed a "landmark strategic alliance agreement" with GE Vernova, which included the purchase of five F-class power turbines. Notably, these turbines were not included in the 83 GW backlog announced on January 28, indicating a continuous inflow of new orders.

**AI Data Centers Fuel Demand Surge** The accelerated growth in electricity demand stems from power-hungry AI data centers. These facilities' need for stable, large-scale power supply is driving an expansion wave in traditional power infrastructure.

Gas turbines, due to their ability to provide stable baseload power, have become key equipment supporting AI infrastructure. Compared to the intermittent nature of renewable energy, gas-fired power generation can deliver 24/7 electricity supply, which is crucial for data center operations.

Market tightness is pervasive. Maxim Power's willingness to lock in capacity four years ahead and pay a deposit reflects power producers' concerns about future supply shortages. Customers are shifting from passively waiting to actively competing to secure manufacturing slots.

**Profit Expectations Sharply Revised Upwards** The supply-demand imbalance is translating into pricing power advantages. Higher demand potentially leads to higher pricing, thereby boosting profitability. Wall Street's profit expectations for GE Vernova have doubled over the past year, with projected 2030 EBITDA now around $17 billion, a significant jump from the roughly $9 billion forecast a year ago.

The stock performance confirms market confidence. At Monday's close, GE Vernova's shares were up 2.87% for the day and have gained 102% over the past 12 months. On the same day, the S&P 500 index rose 0.5%, while the Dow Jones Industrial Average was flat.

As a dual beneficiary of the energy transition and AI infrastructure build-out, GE Vernova is navigating an exceptional boom cycle. When customers must pay deposits five years in advance for delivery, the supplier's commanding position in the industrial chain becomes unmistakably clear.