Elon Musk’s company, Space Exploration Technologies, recently acquired APR Energy, a provider of power to data centers, utilities, and industrial companies, for $1 billion, highlighting that power demand exceeds supply. This is favorable for companies benefiting from increased gas use to power AI data centers, such as GE Vernova. A few years ago, questions existed about gas turbine growth potential due to renewable energy, but by 2026, surging power demand has changed its business. GE Vernova’s backlog, or remaining performance obligations (RPO), shows growth, and management believes RPO will reach $200 billion in 2027. Demand is so strong that GE Vernova signs Slot Reservation Agreements (SRAs), where customers pay cash upfront to secure future production slots. On its recent earnings call, CEO Scott Strazik disclosed that the power backlog grew from "44 to 53 gigawatts and SRAs increased from 56 to 63 gigawatts" in the second quarter, expecting "at least 125 gigawatts under contract by the end of the year." Rising gas turbine sales are not the only earnings driver; higher-margin services revenue from Long Term Service Agreements (LTSAs) attached to turbine sales generates long-term earnings and cash flow. Additionally, GE Vernova’s electrification business (grid solutions, power conversion, and storage) is seeing "robust demand" from traditional utility customers and others.