Venture Global signs turbine deals with GE Vernova and Baker Hughes to pursue power for AI data centers

Venture Global Inc., the liquefied natural gas exporter, said Thursday it has signed agreements with GE Vernova and Baker Hughes for equipment for up to 16 gas-fired power plants, the first step in a plan that it says could make up to 10 gigawatts of computing capacity available for data centers at its sites by the end of 2034.

What Venture Global signed

The company's subsidiary Venture Global LNG signed the main agreement on Oct. 9 with GE Vernova and Baker Hughes Energy Services, according to a Form 8-K filed Thursday. It covers equipment for up to 16 power islands, which are self-contained gas-fired power plants built on site rather than connected to the public grid. Each unit would be a 720-megawatt plant using combined-cycle gas turbines, and scheduled deliveries run through 2034 at the latest. A second agreement, with GE Grid Solutions, covers power transformers and gas-insulated switchgear for up to 21 power island projects.

If Venture Global placed every order allowed under both agreements, it would pay about $17.2 billion, including reservation fees, subject to adjustment, the filing said.

Only part of that is committed. Venture Global reserved GE Vernova manufacturing capacity for eight of the 15 power islands that would follow the first one, with purchase orders for those expected starting in early 2027. It also reserved the first five sets of equipment from GE Grid, with orders expected starting in late 2026, and it expects to order its first power island by the end of 2026. Beyond the reservation fees and that reserved capacity, the filing says no side has to buy or supply power islands or grid equipment until further reservation agreements or purchase orders are signed. The filing says the right to reserve GE Vernova capacity that is not already reserved expires in stages from October 2027 to October 2029, and the right to reserve further GE Grid capacity expires in stages over a period ending in mid-December 2026, if those further reservation agreements are not signed. The company may also owe a fee if it cancels an order once it is placed. The filing does not give the size of the reservation fees.

From LNG plants to data centers

Venture Global's liquefied natural gas plants run on power the company generates itself, off the public grid. The company says it has six power islands ordered, under construction or operating, with about 4.5 gigawatts of gas-fired generation in all.

The new equipment could serve its LNG business or new data centers next to its LNG sites. Sixteen 720-megawatt units would add up to about 11.5 gigawatts of generating capacity, by TickerGrove's arithmetic. The company said that, subject to customer commitments and market demand, it could develop up to 10 gigawatts of computing capacity at sites it owns or controls by the end of 2034.

"By providing Island-Mode power generation, gas supply, closed-loop water systems, thousands of acres of land, data centers, and other necessary infrastructure, Venture Global is creating a vertically integrated AI utility that could solve for the many chokepoints associated with the AI buildout," Chief Executive Mike Sabel said in the release.

The company said the plants would put no added demand on the public power grid or public water utilities. It plans to file its first permit applications this week. Venture Global also said LNG production remains its main goal, and that any third-party power development would be kept separate from its existing LNG operations and would not affect its LNG sales agreements.

What the equipment makers supply

In its own release, Baker Hughes said the framework covers gas turbines, steam turbines and related equipment and services for the new units, and that it will provide the controls and electrical systems that run each island. It put scheduled deliveries at 2028 through 2034 and said additional orders are expected to begin in 2027.

"Behind-the-meter power generation has emerged as a critical component to LNG operations as well as advancing the AI economy," Baker Hughes Chief Executive Lorenzo Simonelli said. Behind-the-meter means power that is made and used on site.

Reuters reported that the growth of data centers has increased interest in such projects, as developers look for their own electricity supply without adding strain to already constrained public grids.

How the stocks traded

Venture Global shares were at $12.56 at 3:29 p.m. ET, down 5.4% from Wednesday's close of $13.27, according to Yahoo Finance market data. They opened at $12.91 and fell as low as $11.76. GE Vernova was down 1.6% at $926.61 and Baker Hughes was down 2.8% at $53.82 at the same time. The companies' releases and the filing do not comment on the share moves.