November 3rd, 2026 | 05:34 CET
GE Vernova, NU E Power, Quanta Services – AI's most expensive bottleneck
Created and published on behalf of NU E Power Corp.
A power grid cannot be expanded through a software update. While technology companies invest billions in new data centres, many regions lack sufficient power generation capacity, grid connections and high-capacity transmission lines. The latest quarterly figures from two American energy giants illustrate the scale of the infrastructure challenge. At the same time, smaller project developers are working to secure suitable sites and future electricity offtakers at an early stage.
time to read: 4 minutes | Author: Stefan Feulner
ISIN: NU E Power Corp | CA6699882065 , US36828A1016 , QUANTA SVCS | US74762E1029
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Author
Stefan Feulner
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
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GE Vernova: The order books are overflowing
Demand for power plants and electricity grid infrastructure is reaching a new dimension. GE Vernova reported third-quarter order intake of approximately USD 29 billion, representing organic growth of 96%. Its total order backlog reached USD 197 billion, with an additional USD 20 billion added in the third quarter alone compared with the previous quarter.
The American energy technology group is benefiting from a problem that is intensifying with the expansion of artificial intelligence. Data centres require enormous amounts of electricity, while existing infrastructure is reaching its limits in many places. GE Vernova supplies gas turbines, grid technology and electrification solutions for this purpose.
Quarterly revenue rose 27% to USD 12.6 billion. Net profit reached USD 1.3 billion, with adjusted EBITDA at USD 1.9 billion. At the same time, management raised its 2026 revenue forecast to USD 46.5 to 47.5 billion. Expected free cash flow now stands at USD 16 to 17 billion.
An acquisition is also attracting attention. GE Vernova intends to buy high-voltage specialist Trench Group for the equivalent of USD 9 billion. Completion is scheduled for the end of 2027. Trench brings around USD 5 billion in order backlog and framework agreements.
Despite the figures, analysts remain divided. On October 29, RBC Capital raised its price target from USD 1,225 to USD 1,230 and reiterated its Outperform rating. JPMorgan, by contrast, lowered its target from USD 1,150 to USD 1,035, but maintained Overweight.
NU E Power: Who will supply the electricity for AI?
Rising electricity demand from data centres is creating new opportunities for energy developers. NU E Power is positioning itself in Canada through solar, storage and hybrid energy projects. On October 19, the company reported discussions with potential power offtakers for its portfolio in southern Alberta. The Lethbridge and Hanna projects comprise a gross capacity of 503.5 MWac, of which 251.75 MWac is attributable to NU E Power on a net basis.
Together with Green Harbor Partners, the company is seeking buyers for electricity and renewable energy certificates, targeting data centres, high-performance computing operators and large industrial customers. In addition to solar power and battery storage, NUE is also examining combinations with gas-fired power plants to ensure a continuous power supply. No binding offtake agreements are currently in place.
The projects are at different stages of development. Lethbridge Two, with 12.5 MWac gross (6.25 MWac net), and Lethbridge Three, with 155 MWac gross (77.50 MWac net), have approvals from the Alberta Utilities Commission. Hanna, with 336 MWac gross (168.00 MWac net), remains in early-stage development. In addition, Lethbridge One, with 8.75 MWac gross (2.19 MWac net), has been generating electricity since December 2024. NUE holds a 25% stake in this facility.
The company also plans to acquire the Hays project, comprising approximately 145 MWac of solar capacity paired with a 61.5 MW / 123 MWh battery energy storage system (BESS). Upon completion, this would become the company's first wholly owned project. The acquisition remains subject to seven conditions precedent. Hays does not yet have an executed interconnection agreement, power purchase agreement or offtake arrangement.
NUE is also broadening its personnel base. The company announced plans to appoint former MAX Power chief Ranjith Narayanasamy to the Board of Directors following its annual general meeting on November 19, 2026, subject to regulatory approvals. At the same time, NUE opened an office in Regina to develop further energy projects in Saskatchewan.
The business model focuses on developing and de-risking energy projects through to potential commercialisation. Binding offtake agreements, grid connections and financing for the next development phases will now be important.
Quanta Services: Grid expansion is becoming a money machine
New power plants alone do not solve the electricity problem. Without power lines, substations and grid connections, additional generation capacity remains out of reach for many consumers. This is where Quanta Services makes its money. The American group is one of the leading service providers in the construction and modernisation of electrical infrastructure.
The recently published quarterly figures show just how strong demand has become. Revenue soared 57% year on year to USD 12.01 billion. Net profit almost doubled to USD 694.9 million. Adjusted earnings per share jumped from USD 3.33 to USD 6.06.
The order books are also full. At the end of the third quarter, projects with a total value of USD 63.7 billion were confirmed. Of this, USD 41.8 billion is attributable to so-called Remaining Performance Obligations, meaning outstanding performance under firm orders. The more broadly defined backlog metric also includes estimated revenue from other contractual agreements.
Cash inflows are also strong. Quanta generated operating cash flow of USD 1.5 billion and free cash flow of USD 1.2 billion. Management raised its full-year revenue forecast to USD 41.3 to 41.6 billion.
Citi raised its price target from USD 871 to USD 882 and reiterated Buy. TD Cowen raised its target from USD 785 to USD 830. Evercore ISI also became more optimistic, raising its target from USD 800 to USD 850.
Conclusion
With an order backlog of USD 197 billion, GE Vernova is benefiting from massive investment in power plant and grid technology. Quanta Services earns money from the expansion of electricity infrastructure and is also reporting record figures. NU E Power operates at an earlier stage of the development chain. With a growing project portfolio in Alberta, the Canadian developer is working to establish itself as a potential electricity supplier to data centres and industrial customers. Ongoing offtake discussions could add economic value to the projects and open new growth prospects.
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