GE Vernova, Xcel Energy Sign Agreement to Advance Power Generation Projects

GE Vernova and Xcel Energy signed a strategic alliance agreement (SAA) to bolster their long-term partnership and accelerate a reliable, affordable, and sustainable energy landscape. The SAA will support Xcel Energy’s power generation and grid projects into the 2030s, reliant upon GE Vernova’s portfolio of equipment and services such as gas turbines, wind turbines, and synchronous condenser technology. Key benefits such as enhanced certainty of supply, operational flexibility, and cost predictability will be delivered to Xcel Energy’s customers and stakeholders.

“We are proud to deepen our relationship with Xcel Energy,” said Scott Strazik, CEO of GE Vernova. “This agreement allows us to collaborate more strategically, aligning our technology roadmaps and service capabilities with Xcel Energy’s vision. Together, we are better positioned to innovate and execute on projects that will provide reliable power for generations to come.”

Per the deal, Xcel Energy executed a reservation agreement to purchase five F-class gas turbines from GE Vernova. Additionally, Xcel is integrating GE Vernova’s technology into its renewable energy pipeline: A capacity reservation agreement was completed for multiple GWs of wind projects using the company’s wind turbines. Both turbine technologies will be manufactured at GE Vernova facilities in the United States.

The companies are also collaborating on numerous grid equipment opportunities that build upon a critical order in 2025 for grid systems, including synchronous condenser technology. The F-class units are not included in GE Vernova’s 83 GW of contracted gas turbines for Xcel Energy, announced during its quarterly earnings release last week.

“As we work to meet our sustainability and grid modernization goals and seize this opportunity to power our communities’ growing demands for energy, Xcel Energy is committed to collaborating with organizations who bring skills, innovation, and expertise to our projects,” said Bob Frenzel, Chairman, President, and CEO of Xcel Energy. “Our strategic alliance with GE Vernova allows us to move at the speed and scale necessary to make energy work better for our customers by providing safe, reliable, and affordable energy well into the future.”

The SAA deploys a holistic approach to energy infrastructure, including the deployment of new generation technologies and practical upgrades to existing systems. Xcel Energy and GE Vernova will collaboratively explore advancements in AI, grid modernization, and joint research and development programs to address rapid energy sector growth and pilot next-generation technologies.

Full-Year Results

The power generation industry experienced a major surge in 2025, with rapidly increasing electricity demand, data center buildout, and grid constraints forcing the market to order gas turbines and transmission equipment in bulk. GE Vernova’s full-year highlights reflect this dynamic shift, as the company’s Power and Electrification segments obtained $59.3 billion in orders: a +34% organic increase from 2024.

However, an unprecedented market posed some challenges regarding gas turbine manufacturing and timely delivery. Demand, largely driven by AI data centers, is currently outpacing supply and generating significant backlogs and lead times for ordered equipment. GE Vernova’s backlog is $31.2 billion higher than 2024’s number, but the expected profit from this backlog grew by approximately $8 billion. The growth in GE Vernova’s Electrification and Power segments helped to generate $38.1 billion in revenue – a +9% organic increase from 2024.